There should be no direct impact on the companies or bank shares, but market works on perspectives and days like these give big shocks/opportunities to people depending on their emotions, perceptions, and risk behaviors.
Anyways this issue is becoming more like a hit-job (like Hindenburg) and market emotions are back to new “normal” – FIIs selling 5000 odd crores and DIIs trying to cover all of it.
The allotment of the warrants to promoter entity happened on 6th Nov. These have not been converted to equity shares yet.
Once full conversion happens the share capital will go up from c.42 cr to c. 43 cr.
Finally someone (A pro) brings it up –
Must read – Specially the ’ Additional aspects of KPI Green Energy Ltd’ part of the article.
Websol Green energy is promoter group entity. They have been issued convertible warrants as a means to infuse capital by the promoters into Websol Energy ( Listed entity ) . The proposal for the same was announced to the exchanges on April 11 th ( The pricing of the warrants are also at Rs 530 due to the same ) . The subsequent price appreciation has favoured the promoters , but I think there is nothing illegal here.
Equity capital was Rs crore rounded off to zero digit. As per Current screener screen, equity capital is Rs 24 Lakh, i.e. Rs 0.24 Cr.
https://www.screener.in/company/512014/
I was hopeful that Blackstone would have inculcated more long lasting risk management frameworks, as well as financial discipline and controls in the company when it was under their control pre-IPO.
But the management clearly still has work to do in a number of areas (for me the main areas are managing working capital days, forward looking projections and planning, and client concentration).
I am still a fan of the company, but I am not expecting short term fireworks. Back when I started this thread, I thought that quarterly electrolyzer production would have climbed to 200-300 by now. Oh well.
Tega Industries’ Q2 and H1 FY25—going through a rough patch?
Geopolitical issues caused shipment delays and order deferments from customers. The company expects these issues to continue until they are resolved.
Delays in receiving payments, inspection reports, and dispatch clearance certificates from some customers also impacted group sales.
Contract accounting led to a one-time expense of INR 17 crores to INR 20 crores in Q2. This expense involved charging off consumables and installation expenses for certain projects, but the company expects to realize the benefits over a longer period.
Increased inventory levels as of September 30, 2024. This could bee attributed to shipment delays.
Depreciation costs nearly doubled year-on-year to INR 26 crores in Q2. The company expects this to be the quarterly number going forward and to increase further depending on capital expenditures.
I read somewhere that they won the bid at Rs. 4 per unit for mixed (solar and thermal). it this high or low?
KPI Green has won tenders at 2.99 to 3.25 levels. i think this is low and not Rs. 4…
No, negative impact in longterm.