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While researching for my Investor Wisdom newsletter,I came across an interesting fact.
If the shareholding pattern of a company has many banks or brokerages, it implies that something rotten is happening.Banks/Brokerages become large shareholders when the company is unable to meet its debt obligations and a part of the debt is converted into equity.
Exhibit one of this phenomenon is GTL.Consider its shareholding pattern as on 31 March, 2013
| Bank | # of Shares | % |
| BANK OF INDIA | 5760424 | 3.67 |
| ANDHRA BANK | 4787185 | 3.05 |
| PUNJAB NATIONAL BANK | 4045570 | 2.58 |
| IDBI BANK LIMITED | 3317412 | 2.11 |
| CANARA BANK | 3296275 | 2.1 |
| UNION BANK OF INDIA | 2769496 | 1.76 |
| DENA BANK | 2741555 | 1.75 |
| VIJAYA BANK | 2654910 | 1.69 |
| INDIAN OVERSEAS BANK | 2433199 | 1.55 |
| UCO BANK | 1854519 | 1.18 |
| BANK OF BARODA | 1684550 | 1.07 |
| SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA | 1649828 | 1.05 |
| INDIAN BANK | 1639016 | 1.04 |
Banks altogether hold around 24.6% of the company !
Prashant made a great observation-There is not a single private bank to keep the PSU banks company !
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5 Stocks whose buyback is currently on
This post is in continuation of my 5 Stocks Series (see here)
5 Stocks whose buyback is currently on is listed below:
- FDC
- MAHSEAMLES
- PANAMAPET
- SELAN
- INFINITE
As per news reports,
A Delhi district court has rejected the anticipatory bail plea of IDFC Capital CEO Tapasije Mishra in a case filed against him by a woman alleging sexual abuse, intimidation and breach of trust.
The complainant, a divorcee with a nine-year old son and a former air hostess with Emirates Airlines, in an FIR filed with the Vasant Kunj police station (New Delhi), had alleged that Mishra had sexual relations with her for the last three years while promising to marry her. Mishra then backtracked on his commitment, and his father (also named in the FIR) threatened the complainant with dire consequences unless she stayed away from him (Tapasije), she alleged.
In his ruling, Additional Sessions Judge Daya Prakash, said custodial interrogation of the accused was required for investigating the allegations of mental and physical torture.
I find it interesting that IDFC has not informed the stock exchanges of this development.Is it because they think that their CEO getting arrested is not material information?
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