Indiabulls Ventures Ltd at Rs 33~ Up 100% in a month ~ More in Store?

Indiabulls Ventures Ltd at Rs 33~ Up 100% in a month ~ More in Store? ~ 52 Week high was Rs 39+ a year ago in July 2015 & 52 Week Low was Rs 13 this April 2016

The Market Cap from @ Rs 500 crs a month ago is now kissing Rs 1000 crs

It was earlier called Indiabulls Securities Ltd

The uptick has been brilliant in quick time & the writing has been on the wall..read that as Company Notifications on the BSE & NSE in the past few months

May 13,2016 ~ Granting of 9.5 Million Stock Options at an exercise price of Rs 16(current price at the time) under the ESOS 2009

June 15,2016 ~ Board Approval of a Preferential Issue of  58.3 m Convertible Warrants to Promoters & CEO at exercise price of Rs 19.75

June 20,2016 ~ EGM Notice for July 15,2016 to pass the Preferential Issue as above & SALE OF INVESTMENT 

July 2,2016 ~ Granting of 19.7 M Stock Options at an exercise price of Rs 24.15(price a few days ago) under ESOSs 2008 & 2009

So what’s the Big Deal ?

Big Deal is being planned to happen & that’s disclosed in the June 20,2016 Notification of SALE OF INVESTMENT for improving liquidity & reduction of debt purpose which is Item No 2 and relevant part extracted as below

“….to sell upto 100% of shares held by Indiabulls Distribution Services Limited, a wholly owned subsidiary of the Company (“IDSL”), in India Land and Properties Limited, a wholly owned subsidiary of IDSL, on the terms and conditions, including the consideration, which shall be more than the amount invested by IDSL, in such shares, as the Board may finalize” 

This actually is the Sale of One Indiabulls Park,Ambattur,Chennai which was bought in November 2014 at @ Rs 600 crs from Madrid Based NRI Investor Harish Fabiani (he’s also invested in Edelweiss & Indiabulls Group Companies + others)

FY 15 Consolidated Accounts as on March 31,2015

Consolidated FY 15 Accounts of Indiabulls Ventures Ltd shows Net Fixed Tangible Assets at Rs 550 crs  of which 77% is this Property reflected  with a aggregate value of Rs 426 crs ~ Rs 320 crs for the Building + Rs 15 crs for Furniture + Rs 91 crs for Plant & Machinery

Long Term Debt at March 31,2015 was Rs 331 crs ,all of which relating to the One Indiabull Park Property ~ 150 crs 10 year (monthly EMI) Lease Rental Discounting Facility + Rs 185 crs 5 year Loan Against Property

FY 15 also shows Goodwill on Consolidation of Rs 109 crs,most of which is related to this property acquisition by subsidiaries

FY 16 Consolidated Accounts as on March 31,2016 reveal : read more

B.A.G. Films and Media Ltd back to under Rs 13 from just under Rs 105…It had never deserved to shoot up like this!

Just saw the mandatory detailed Q 3 Results of B.A.G Films and Media Ltd given by the Company in the Sunday Edition of Business Standard

It has earned just Rs 16 lakhs in Q 3 in the three months to December 31,2008 but has capital deployed of Rs 185 crs….with Rs 29 crs in Audio Visual Production and Rs 5 crs in Movies and the bulk of Rs 75 crs shown deployed in Leasing and Rs 76 crs shown as unallocated

As is required the results also show the Funds Utilisation of the various Preferential Issues.

One of the Preferential Issues was of Rs 26.33 crs raised by the allotment of 20250000 Equity Shares(17.95% stake) of FV Rs 2 at a Premium of Rs 11 to Sameer Gehlaut…He  is one of the promoters of IndiaBulls

Now this rung a strong bell.

This Issue in 2007 had raised the spectrum and strong suspicion of Insider Trading by the Husband & Wife Promoter Couple of B.A.G.Films,Rajiv Shukla and Anurradha Prasad…Mr Shukla is on media channels virtually every other day giving some sound byte or the other,either in his capacity as a leading functionary of the BCCI (India’s Cricketing Body) or of the Congress 

This is what had transpired two years ago in January 2007 and there has been no Investigation or clarification,either by BSE or by SEBI,despite their awareness.

Promoters,Chairperson & Managing Director,Anurradha Prasad and Director, Rajiv Shukla purchased shares of BAG Films on Jan 3,8 and 9,2007 before the Board Meeting on Jan 15,2007 to consider preferential allotment at Rs 13 to Sameer Gehlaut (promoter of IndiaBulls).Aggregate of 611283 shares were picked up,with the bulk of 567583 done so by Mr Shukla.These shares had been picked up from secondary market purchases between Rs 9.16 and Rs 12.45

On Jan 17,2007, BSE uploads their notice for the preferential allotment on the website

Price on Jan 17,2007 crossed Rs 20 and closed around Rs 19  …Price had doubled inside two weeks and volumes exploded.From the January 2007 high of Rs 23,the share price zoomed to a high of Rs 104.90 in the same year in November 2007

Those who suffered are the poor sellers in the first ten days of January 2007 at these prices of Rs 9.16 to Rs 12.45 as they were unaware of  what was unfolding!

 Ironically the company had send BSE notices for the promoter acquisition under  Regulation 13 (6) of SEBI (Prohibition of Insider Trading) Regulations, 1992  and BSE site shows these uploaded on Jan 10 and Jan 15,2007

The share price has now touched a 52 week low of just under Rs 13 from a 52 Week High of Rs 61….What goes round must come round !  read more