Just spotted a news headline that SRK is in the BAG…..It seems Star Actor, Shah Rukh Khan, is planning to tie up with his friends, the promoter couple of the BAG Group to provide TV Content and even possibly produce TV Shows on BAG’s new TV channels.
Hey SRK just check out what your friends, the promoter couple did a year or two ago…they purchased lakhs of shares of their own company on the BSE in the Rs 9 to Rs 11 range and a week later announced that one of the promoters of India Bulls will invest Rs 26 crores in his personal capacity in the equity of the Company by taking up a preferential allotment of Two Crore shares at Rs 13 each…. Promoters also allotted convertible warrants to themselves… I’m sure they had a good reason for doing, possibly to shore up their stake before allowing the preferential allotment … Amusingly and quite ironically, I must add, the Company had to inform the BSE about these open market purchases by promoters under Insider Trading Rules… all of these announcements are there in the public domain on the BSE website… The share price simply started zooming upwards past Rs 50 and beyond.. It ofcourse is now down to Rs 30.
Interestingly when I put this before our young generation…. young 20 to 22 year olds in three premier education institutes in Mumbai, the girls felt this was not ethical while the boys felt there was nothing wrong but had no answer to what about those poor shareholders who sold at Rs 9 to Rs 11 not knowing about the preferential allotment and wanting just an exit after being trapped at higher prices in this company’s shares in their IPO issue.
I had earlier advised my clients to invest in BAG Films as I was excited about their foray into Radio Channels through their subsidiary and the Institutional support of IDBI who had acquired an equity stake in the company… However on these announcements I advised clients to exit, giving them my reasons even though I told them that the share price would soar… all of them preferred to exit and not one has regretted that the share price actually crossed Rs 80 afterwards!
How all of this missed BSE and SEBI.. I don’t know!