Price when posted : NSE: Rs. 6.90
For the benefit of all the boarders I quote only 1 question and its answer from the Interview you cited to support my observations. Please read carefully and decide for yourself: Doshi: Minority shareholders have to take a call on whether they should stay invested, whether they will be written down to zero, whether they will get written down to 10 percent of their pre-insolvency value or whether they in fact might be able to preserve their value. How are they supposed to make that call? Diwanji: Let%u2019s talk about the 12 big cases. It is apparent that all these have debt which will never be serviced and never be paid. There were not merely liquidity issues. Questions can be answered by the minority shareholders. Is this organization generating enough EBITDA and that information is always available quarter on quarter. Figure out what actual EBITDA generation will service the loans. If they are not being able to service consistently then you know that they are over trading. If you know that they are overtrading, then there is no equity value left. You are at benevolence of whoever is buying it to give you equity value. There is no science to it. My view is they should not be holding those shares and exiting because they know equity value is zero and whatever they are getting in the market they should take. I am in favour of a ban for the reason that you give an exit opportunity to one shareholder at the cost of another shareholder, so somebody else will buy in the name of greed, hoping that the share price will go up. I don%u2019t think you are benefitting the shareholder community at large by keeping the trading open.
Why is the message offensive? Please click on the reason below to notify the moderating team. Marking good messages offensive will put you on the moderating team`s radar.
Repost this message
For the benefit of all the boarders I quote only 1 question and its answer from the Interview you cited to support my observations. Please read carefully and decide for yourself: Doshi: Minority shareholders have to take a call on whether t...
Thank you for reposting this message.