Consolidation to a Higher Denomination was done by Binani Metals, Rasoi Limited , attempted by Digvijy Finlease and , now, being attempted ( but opposed by shareholders ) of Macrofil Investments Ltd ( a Nusli Wadia Company ).
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.
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 ).
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.
October 13, 2017
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,"
December 08, 2010
Asset Laden Holding / Investment Companies- Promoters Uninterested in True Value Unlocking
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.
September 05, 2017
Justice Demanded by Small Investors From Asset Laden Investment Holding Companies - ET Link
please click the link
JAB APNA HISSA MANGEY GEY
IK BAGH NAHI; IKK KHET NAHIN
HUM SAARI DUNIYA MANGEY GEY
( Josh Malihabadi )
Caution :The blog writer has personal/ family members' holdings in this company , so please make suitable "provisions " for likely over optimism
( NB : All information given in good faith. Please recheck all facts. No responsibility taken by this author / blog .