Lok Housing at Rs 44!…down from Rs 400 in just six months!

Lok Housing has an EGM today to pass a resolution to raise funds upto US $ 200 million or Rs 840 crs…..If you had a look at the financials you’ll sell your wife and buy the shares!…PAT of Rs 113 crs on an Equity of just under Rs 43 crs for FY 08 March ending and an EPS of just over Rs 26…that’s a PE of under 2!…Interest burden too has dropped from Rs 52 crs in FY 07 to just above Rs 13 crores in FY 08

What’s happening ? With such a performance why has Lok Housing dropped from Rs 400 in Jan this year to Rs 44 today…is there a significant legal issue, inflated asset or liability non provision we don’t know about ? 

Amusingly the promoters have allotted themselves 35 lakh convertible warrants on May 22,2008 with future conversion of each warrant into one share at Rs 354 !…obviously if promoters exercise this conversion option…the conversion is not compulsory

There were strong rumours of a major group of shareholders dumping the stock…why?