February 21, 2018

Bhushan Steel and Tata Steel's Bid

Tata Group Reorganisatin- Future Plans

Binani Cement Undervalued in NCLT Say Promoters

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 Blog Comments

Deliberate Undervaluation by Valuers is big and serious issue , also , affecting investors

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February 14, 2018

Games Promoters Play ( on Minority Public Shareholders ).

Promoters use clever moves to forcibly eject Public shareholders when ever they feel like i.e. when the Company has excellent future prospects or when it suits the Promoters. 

1 ) Selective cancellation of Non Promoters shares.

2 ) Conversion of Equity shares in to Redeemable Preference Shares.

3 ) Consolidation of face value of one share to a Higher Denomination .

In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.


If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate .

 The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. 

For example if FCI OEN Connectors Limited feels that Rs.767 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. 

A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

FCI OEN Connectors-Compulsory Buyback at Fraction Value

FCI OEN Connectors is the latest Company ( like Cadbury India ) to compulsorily eject loyal Non Promoter shareholders @ Rs.767 /- per share. 

Real Valuation is Rs. 4000 + /- per share .

This anti Public shareholder move needs to be vigorously opposed


We are grateful to Mr. PP Zibi Jose of 

Tenrose Capital Services Ltd, Cochin
Tel - 0484- 2401685 ; 2401684 ( m ) 09388603877    email : tenrosekochi@gmail.com

  for taking up the issue


Please click below for the entire fact sheet letter brilliantly written by Mr. Jose.


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Ban All Face Value Consolidations to Higher Denominations

Whereas Split of the face value of one share to a Lower denomination should be allowed ,Consolidation to a Higher Denomination should be absolutely banned by SEBI.

Consolidation to a Higher Denomination was done by Binani Metals, Rasoi Limited , attempted by Digvijay Finlease ( later withdrawn under Public shareholders' pressure ) and , now, being attempted ( but opposed by shareholders ) of Macrofil Investments Ltd ( a Nusli Wadia Company ).

Macrofil Investments rareindianshares.coLimited ( Nusli Wadia Investment Company )

Macrofil Investments is an Investment Holding Company of Nusli Wadia group ( Bombay Dyeing, Britannia , Bombay Burmah , National Peroxide etc ).

Marofil Investments holds ( on a very small capital base of Rs.44 Lakh ) inter alia one third of National Peroxides' Equity.

In the last one year Market price of shares of National Peroxide has gone up from Rs. 600 to Rs.2000.

Macrofil Investments has , very cleverly , devised a plan to consolidate face value of one share from Rs. 10 to Rs. 5000.

All the Non Promoter shareholders would be evicted.

The rate set is around Rs. 3400 per share. This has been worked out by Valuers appointed and paid by Macrofil Investments.

The realistic rate should be Rs. 10,000 + ( for Rs.10 share ).



also , please read


Share Activism is a step in the Right Direction. There is , always , a threat of oppression by the Majority shareholders ( Promoters )on Minority ( Public ) shareholders.


old posts

October 13, 2017

Minority Shareholders' Activism- Zindabad- Fight Against Oppression

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Blog's old posts

Till date, the most powerful tool in the hands of minority shareholders has been bringing a suit for oppression and 

mismanagement, said Suhail Nathani, managing partner, Economic Law Practice. "Under the 2013 Companies Act, 

Section 245, over 100 shareholders can also file a class action suit but its application and enforcement is still nascent," 
he said. 

Read more at:


old posts

December 08, 2010

Asset Laden Holding / Investment Companies- Promoters Uninterested in True Value Unlocking

Promoters initially  invite public investment by selling shares in their holding companies . These holding companies promote new companies  Over a period of time their promoted  ventures succeed and the original investment made by the holding company multiplies many times over in value .

 Now , instead of genuinely sharing the wealth with all the stakeholders  , non promoter minority share holders of original holding companies are  treated by Promoters  as UNWANTED , like poor relatives at a rich cousin's marriage party.

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September 05, 2017

Justice Demanded by Small Investors From Asset Laden Investment Holding Companies - ET Link

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( Josh Malihabadi )

February 20, 2018

PNB - Excerpts of its History

Upon nationalisation in 1969 ,the original company , The Punjab National Bank Limited . minus its Banking business was renamed PNB Finance and Industries Limited.

The shareholders of the nationalised Bank were given the option of either taking the cash compensation given by the Govt.or continue to remain shareholders of then renamed PNB Finance.

( Those who retained their shares and if held up till now , have become Lakhpatis / crorepatis )

At the time of Nationalisation ,it was owned by Sahu Jains of the Bennett Coleman and Co ( Times of India ) group.

Before Sahu Jains bought the Bank once the controlling stake had , for some time , passed in to the hands of Rana s of Nepal as some of the then Promoters of the Bank pledged their shares as security for loan from the Rana s.


 Later ,Bennett Coleman group founded another Bank- Times Bank. But it was soon merged with HDFC Bank

Before Independence , Reserve Bank of India , also had Public shareholders. On nationalisation in 1949, shareholders had the option of taking shares of Imperial Bank ( now State Bank of India ).


Regarding Bank shares I am reminded of a short story . in Hindi , titled " Mera Makaan " taught to us in school.
The writer starts construction of his house in Delhi and faced over budgeting on nearly every segment of construction.
Friends would tell him " Bhai , Dilli Mein Makaan Banaa Rahey Ho - Yeh Bhi Hona Chahiye - Yeh Bhi Hona Chaihiye
The writer says to complete the house he had encash every bit of his Savings.
:" Mere Imperial Bank Ke Share Bhi Bik Gaye. KISMAT WALON KE PAAS IMPERIAL BANK KE SHARE TH -E - Y


One the many Banks which later merged with Punjab National Bank was New Bank of India ( now NBI Industrial Finance with Bangurs ).

It is matter of great pride for us that Late Dr. Ganeshi Lal Aggarwal ,founder of New Bank of India , was father-in-law of my maternal uncle ( real Mamaji ) Dewan Brij Kumar IFS ,Former Ambassador of India..

Mamaji , BA LLB ,would tell us how , once ,before 1947 , his father-in-law told him " Why do you not join the Bank ?" .

Mamaji did not want to join.

He answered " Bauji , you know how terrible my handwriting is - Debit ki Jagah Credit Pada jayega aur credit ki jagah debit ".

Mamaji was told not to come near the Bank.

In those days ( no computers ) those applying for a job in Banks had to write their application in their own handwriting.

A good legible handwriting was an important consideration.

Nirav Modi- Action Replay

Earlier Avtaars - Harshad Mehta and AK Telgi

Scams of such magnitude have hidden Politician / High Govt. collaborators. It is a team work of " Ali Baba Aur Chaalis Chor "

We have Nirav ( Alibaba ) but where are his Chaalis Chor ?

( In Harshad Mehta , Telgi cases their Politician / Govt official partners went scot free ).