At one time in the past, Gajra Bevel Gears was a manufacturer of automobile gears. It was quite a renowned player in the HCV, LCV, tractor and utility vehicle segment. Unfortunately, it borrowed heavily and suffered heavy financial losses. The result was that the Company discontinued its manufacturing activity since 31.10.2006. Its plant was also seized by the provident fund authorities. It is presently a “Sick” company and a revival package is under consideration by the BIFR.
For the past several years, Gajra Bevel Gears has had no operations.
IFCI, which is the largest shareholder with an 18.91% stake, has been desperately seeking buyers. Today, it found a few. This included Ashish Chugh, who picked up 120,000 shares at Rs. 1.22 per share.
Ashish Chugh appears to be banking on a revival of Gajra. According to the last annual report, the Company has entered into a one-time settlement with IDBI, IFCI, MPAVN and MPSIDC. Only one secured creditor M.P. Financial Corporation is remaining. Maybe, that also has been settled as of date.
The economic environment is also ripe for revival. The company’s products will find acceptance in the Auto Industry’s original equipment and replacement market.
So, Gajra Bevel Gears is the classic “Heads I win, Tails I don’t lose much” must be Ashish Chugh’s calculation.
Will check my luck with some money.
good way to get sure shot capital loss for reducing tax liability 🙂
Brothers, please follow strict investment principles. Never deviate from core principles.
Once you deviate from principles for some gains, it will be for ever deviations.
I don’t know why this blog is publishing this kind of articles.
1.2lac shares is a paltry number for an investor like Ashish Chugh.. looks like a small punt on insider info with less or no conviction..
yes, its really sad seeing ACE investors turning into traders..and making fool of retail small investors..
I could not buy as HDFC did I allow to buy below 2.5. Huh
This is a waste stock
Man this guy drills deep to find some value. He may have money to burn on such trash, we don’t. Lots of decent stocks to buy with no risks.
Asheesh chug had selan exploration in 2007at 80.there must be reason if he is there.
Bought some today at 2.57. High Risk & High Returns category. Looks positive.
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