Heritage management being embarrassed on the call on the rationale for the rights issue; reflects very poorly. Mgmt. saying we did this to help fund capex, which people rightly pointed out to good cash balances on books and strong FCF generation last few quarters. Sambasiva Rao gets frustrated and finally tells the IIFL analyst that you are not the managing director to tell us what to do.
These guys do not realize such things damage multiples for good no matter what numbers you deliver. This is not the first time he has lashed out on the call. Clearly, they had some convoluted logic for the rights issue – which is fine but they should be forthcoming and explain that on the call rather than give illogical reasons.
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