Tree House Education up Shit Creek & Down Market Big Time at 20 % lower circuit today of Rs 169
70% of Wealth Destroyed in nine and a half months from 52 Week High of Rs 548 on BSE & Rs 559 on NSE recorded on February 16,2015
No Kidding ! & Excuse the Pun !
It surely is a terrible Friday for Geeta & Rajesh Bhatia who created the Company
Trading Volumes are 10 times the daily average past two weeks indicating huge and relentless selling
52 Week High on BSE was Rs 548 mid Feb 2015 and today’s Rs 169 is the 52 week low….NSE recorded a 52 week high of Rs 559 in mid Feb 200
Look at the the Irony ! CARE has upgraded their long term debt rating from A- to A
But Markets have downgraded them big time !
So the Big Question ? Why this Big Sell Off today !?…BSE recorded 2.44 lakhs shares with 42% delivery while NSE recorded over 13 lakh shares with @ 50% marked for delivery !
It must have to do with loan topping by the Bhatias
Long Term & Short Term borrowings are secured by mortgage of Land, building, office premises, hypothecation of movable assets, book debts, both present and future of the Company.A part of the short term borrowings are also secured by a fixed deposit.Nowhere does the FY 15 Annual Report state that such borrowings are also secured by Promoter Pledge of Shares.So for what Loans have the Promoters pledged their shares ? Private?
PBV is heading below 1 from credible and solid levels of 3.5 earlier in the year.Company makes monies and raised dividend to 20% in FY 15 though there was some controversy on the high value of Receivables which was clarified by the Company as staggered payment by clients for K-12 Revenue Stream and accepted by Stakeholders Empowerment Services (SES) who had raised the query
So then what is the nature and purpose of the loans taken for which the pledge has been made by the Bhatias to the lenders like Ambit Finvest,Capital First,STCI Financial,Kotak Mahindra etc ?
Bhatias own 29.97% of the Equity of Rs 42.31 crs at September 30,2015 holding 12680069 shares of which they had pledged 5482000 or 43.23% with the lenders
Their latest notification to BSE reveals 6467000 shares pledged .As Tree House Share Price kept crumbling they were forced to provide additional security and create further pledges and encumberances on the same loan.In October & November 2015 an incremental 985000 additional shares were pledged .Now 51% of the shares Promoters hold are pledged ….Rajiv Bhatia has pledged nearly all his holdings and some held by wife Geeta Bhatia