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November 19, 2008

Bhilwara Spinners under Hostile Bid by Ashok Kumar Parmar…Parmar ? Aha ! Suzlon !

Ashok Kumar Parmar has surfaced yet again to make an unsolicited hostile Bid for Bhilwara Spinners.He is making the Mandatory Public Offer to acquire atleast 20% of the Equity of the  Company at Rs 15,having already accumulated 15% of the equity stake…Bhilwara is locked up by 5% on Upper Circuit at Rs 11.99 today on the BSE 

Does this name,Ashok Kumar Parmar, ring a Bell ,other than his efforts to buy into the Videocon Group ?

Is it the same Parmar who made a killing in SUZLON ? If so, all else is Petty Cash for Parmar except for Suzlon

Let me stir all of you up

The Suzlon IPO was at Rs 510 for a Face value of Rs 10.The Issue opened on September 23,2005 and closed on September 29,2005 and was oversubscribed nearly 46 times

The Pre IPO Shareholding in Suzlon reveals some really interesting facts…While all of India craved to be allotted shares in Suzlon,those who controlled the whole IPO Process,Citigroup and ChrysCapital, were the largest beneficiaries

Citigroup initially invested just Rs 50 crores for an allotment on April 19,2004 of 2577320 shares at Rs 194.It is this lot that it offered for sale at Rs 510 in the IPO.However the Pre IPO Holding swelled to 23195880 shares through the largesse of two liberal 2:1 Bonus issues on September 25,2004 and June 24,2005 reducing the holding cost per share to just Rs 21.56…The Company clearly had a premeditated gameplan in issuing such liberal Bonus and were probably influenced by Ajay Relan and Ashish Dhawan,who came on the Board of Directors,representing Citicorp and ChrysCapital respectively. 

ChrysCapital too made a fortune…investing on August 10,2008 ,Rs 50 crores for 2049180 shares at Rs 244 and with the subsequent bonus issues taking their holding to 18442620 shares reducing average holding cost to just Rs 27.11 per share.It then sold a total of  3041000 shares at average Rs 365.18/share to entities of the Government of Singapore Investment Corporation Pte Ltd on July 6 and July 11,2005.It was left with a holding of 11252620 shares

On March 28,2005,just before year closing,a Suzlon Group entity,Suzlon Capital sold 1245000  shares to 13 entities of the Parmar group for Rs 100/share aggregating an Investment of  Rs 12.45 crs.With the Bonus of 2:1 on June 24,2005 the Holdings shot up to 3735000 shares reducing the holding cost to Rs 33.33/share

SEBI has just directed a Suzlon IPO allottee,Himani Patel, to pay Rs 33.52 lakhs plus 10% Interest from October 19,2005 (Date of Listing) to actual date of Payment, for unlawful gains made in the Suzlon IPO  read more

It’s no wonder they make Movies like ‘Rang de Basanti’ and ‘Shahenshah’!

To be honest,I did not initially connect with the ending of ‘Rang de Basanti’,where the young Indian Youth with a moral and social conscience kill the Defence Minister, and one of them ,even his own father, as they were shamelessly involved in scams and corruption on a gigantic scale with little or no remorse that they were looting their own country

It dawns on me now why young people are compelled by circumstances to take law into their own hands to get rid of such ‘old’ and ‘ongoing’ menace…This is not the India they want to Live in..so they are Changing it

With the increasing Scale of Scams…there is just no end to Greed !…It is not too difficult now to connect with the ending in ‘Rang de Basanti’ and the role of ‘Shahenshah’ where the angry Amitabh Bachhan plays the title role in a one man mission to destroy all who are criminal and corrupt

Just look at what is happening !…The Judiciary is supposed to be supreme…yet Supreme Court Judgements are blatantly flouted by Political leaders and their Parties…there is ongoing debate that even the Supreme Court has no jurisdiction over Parliamentary Affairs !

The Telgi Stamp Scam of Rs 30000 crs (US $ 6 Billion) exposed the high and mighty in the political arena,to no avail…Major Defence Scams have been exposed but little justice done…. The recently exposed Telecom Scam of Rs 80000 crs (US $ 16 Billion) in granting 2G Licenses at Throwaway Valuations too may meet a similar fate……The scale is put in perspective if you view it against the fact that over 20%, or over 200 million people, of the 1.13 Billion Population In India live officially below the poverty line of just over Rs 500 (US $ 10 only ) for urban areas and even lower than this for rural areas

Land Scams,Stock Market Scams,Pyramid Scheme Scams,Defence Scams,Health Scams,Employment Scams…the list is endless…I now fear that with the Indo US Nuclear Treaty having been signed,the Mother of all Scams may be just ahead ! 

Yes, we are the world’s largest democracy and love our Freedom…..Freedom of Frustration,Freedom of Anger,Freedom of being Shorted,Freedom of Poverty and the Continuing Inequality……

We have ourselves to blame….we vote these Legislators to our Legislature…they pass the laws,often guided by pecuniary interests…they are guided by The Executive….often how not to leave footprints in the Trail…..we are protected by a Judiciary who itself has repeatedly thrown up it’s hands in frustration…when Deliberate Delays and Denials and Destruction of Evidence has become the order of the Day read more

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