This morning Sabero Organics hit upper circuit on BSE at Rs 97.90 as news officially broke that that the Promoters Chuganees were selling out in toto their full 42.22 % Equity to Coromandel International (CI),a Muruggapa Company at Rs 160 a share + Rs 38.47 non compete component too => Rs 198.47
CI will also offer to buy out another 31 % of the Equity from the remaining shareholders for a total stake of 73.22 %
But this sell out by the Chuganees was known to insiders a fortnight earlier this month….look at the trading pattern below on BSE from May 16,2011 to date….clear case of Insider Trading……Sabero was languishing below Rs 60,low volumes and number of trades and then a sudden burst of Volumes and Trades and intermittent upper circuits from May 16,2011
From Daily Turnover of Rs 20 lakhs to Rs 30 lakhs the turnover bursts into Rs Crores from May 16,2011…in fact in just 12 trading days from May 16,2011 to date May 31,2011 the BSE Turnover aggregated Rs 127 crs + in Sabero Organics…could have been more if upper circuits were not hit…..standing out are the Tuesdays May 17 and May 24….38 + lakh shares aggregating Rs 29 crs + and near 28 lakh shares aggregating near Rs 25 crs respectively…and today too is a Tuesday when the announcement was made….Insiders probably are great ‘bhakts’ of ‘Siddhivinayak Lord Ganesha’ !
So who leaked the sell out by Chuganees to the Muruggapas at thrice the market levels of Rs 60 before the announcement this morning…..only three root sources could be there….Someone close to or in Sabero Organics,someone close to or in Coromandel or someone close to or in the Investment Banking and Valuation team who are advising and involved in the deal…and as deals have to be put through Brokers,it is logical to assume even involvement of Brokers in this……..
incidentally the Valuation of Rs 160 is simply terrific…thrice the market price levels of Rs 60……wonder who did this and what is the basis….and is there some hidden agenda in such a high valuation to market price ?
With insider aggregate BSE turnover at Rs 127 crs + and aggregate Volumes of 1.56 crs shares for last 12 trading days and observing weighted average prices and daily volumes,I can safely observe that in just twelve trading days already Rs 40 crs + profits at the BSE have been accumulated with the promise of this figure likely to cross Rs 100 crs in the coming days