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Jaiprakash Associates : Executive Chairman,Manoj Gaur does not know the Debt to Equity quotient !

Was shocked to hear this morning on CNBC 18,Executive Chairman of Jaiprakash Associates,Manoj Gaur,confessing he was not aware of the Debt to Equity quotient in his Company ! On earlier being asked as to how much cash was there on the Books,he quickly stated “Rs 1500 crs”

Mr Gaur,who’s running your Company if you’re not !?

Mr Gaur,you are the Promoter’s son entrusted with running the Group and it does not bore well for those stakeholders who are riding with you, that you are not aware of the Financial leverage in your company in these credit contraction times !

You now want to explore Merger of your Power Companies…earlier you wanted seperate IPOs for them…Thank God your IPOs did not take place…they would have obviously come at high obscene premiums in bullish times and made suckers of Investors

Yes, you boast of building Assets of National Importance and achieving a Turnover of Rs 10000 crores in the watershed year of 2010…but at whose cost !…ask your shareholders !…it’s one thing to preach,like you do,that you follow three principles,that whatever you do should add value and serve your bankers,clients,employees and satisfy shareholders…it’s another to put this into practice !

One more piece of sincere advice for you,Mr Gaur…just stop claiming you’re a responsible Corporate Citizen..action speak louder then words…just recall how you cornered Rights Shares in the 1990s,denying allotments to genuine shareholders on flimsy pretexts…or how you allowed a large number of Imported cars to be parked at your Jaypee Greens Complex,hidden from all, when the scandal broke out of how Such Cars were imported  to ostensibly serve Tourism Needs and hence were not subject to High Import Duties,but were actually diverted for personal use by a host of Influential People

Markets have been unforgiving to you,Mr Gaur…..your Company’s share price has dropped over 90% in 2008 and is at Rs 68 today….Rs One Lakh invested in your Company in January 2008 is now down to below Rs 10000 inside a year ! The share Price will have to recover by over 1000 %,miracle if this happens, to recoup the loss…. Does this not tell you a stark fact !?…that shareholders dumped self serving promoter and manipulated scrips…now,don’t go blaming all the fall on deteriorating market conditions !


2 thoughts on “Jaiprakash Associates : Executive Chairman,Manoj Gaur does not know the Debt to Equity quotient !”

  1. Brijendra Pratap Singh

    To WhomsoEver It May concern

    I just read this article.I dare to say why r u blaming someone if your not sure about market conditions.If a GOD FIGURE Gentleman like Sh Manoj Gaur ji is trying to be on postive track which would indeed serve the nation and would be giving a positive vibes across the country in terms of infra,employment and resources.

    Is it a matter,what cash company has in books?

    None of us out here are bothered with your faul remarks.lets us do what we want and serve our country.

  2. Gaurav Parikh

    Dear Mr Singh,

    Respect and actually appreciate your passionate and intense response to this blog posted over two years ago….Thanks….hope it’s not motivated…. my blog serves to sound a caution to investors on scrips and promoters that deserve stronger valuation and due diligence exercise before investing in them

    I bear no animosity or malice to the Gaurs…and have no personal axe to grind…my only concern is that investors who trusted them and invested in their listed companies in the primary and secondary markets should not be betrayed or short circuited…….the stark reality is that they have….the Gaurs are old hands at doing this and with political patronage too to boost…. transperancy , accountability and corporate governance issues are plenty here

    I passionately share your strong sentiment of serving the country…..but this should not be a by product of actually serving self….and on your point of who cares what Cash is on the Books, I suppose Cash off the Books is probably then of more interest !

    …..and you’re pretty naive if you pass all this off to just market conditions….Ask any seasoned market veteran of their opinion and experience of the Gaurs and the Jaiprakash Group in the 1990s and even the last ten years…you will probably then understand why the markets have slapped their shares to record lows time and again…even now, though the Sensex is at 18200 + levels

    The Jaiprakash Group has been a Wealth Destroyer and not a Wealth Creator for Shareholders….and you must remember that of all Stakeholders,it is the Shareholders who own the Company…and you cannot create Wealth for the Nation by destroying Wealth of the Shareholders

    I hope the Jaiprakash group with it’s ambitious new forays and expansions in the fields of Cement, Engineering , Hospitality, Expressways and Power is able to redeem itself in the years ahead

    If Manoj Gaur appears to you like a God Figure please pray to him to create some miracles for his listed scrips to recover so that investors recover all their lost monies…they too were of course too trusting and naive to have invested in the Jaiprakash Group in the first place at obscene high prices,I daresay induced by hype through media manipulation and unscrupulous share brokers, advisors, analysts and merchant bankers..but these are only part of an unholy nexus

    A consolation of sorts is that Gaurs are in fine company here….Anil Ambani and his Reliance Group and Kishore Biyani and his Future Group….they have all let down shareholders,especially the IPO allottees….For the sake of the sanity of their shareholders and for the sanctity of our Markets we are all hoping they all redeem themselves and their companies….sooner the better

    You are entitled to your views as I’m to mine….and whatever I have observed is in the public domain and also recounted to me by affected investors…By the way, just so you get a sense of my being neutral here, I had actually recently recommended on my blog Jaiprakash Industries at Rs 83 range for quick returns…I felt it was beaten down too much….it shot up to Rs 100 after this and has of course retracted back to Rs 82 levels


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