While it may sound bit harsh, but if you find the company is not fit into your investment parameter, for whatever reason, just ignore. If you have something negative and want to check, it is perfectly fine. Now talking about intent of management, the managment past conduct has been reasonably clean. Please read the thread from beginning about treatment of management to shareholder/ employee and with state. They use to provide fixed price ration to their workforce in past which was charged to P&L. Considering the past long history of fair treatment to various stakeholder, now to raise concern about managment conduct and decision, I think we need some solid reasons for being watchful. This is my opinion and may be wrong. While we all shall be watchful and careful, but we also need to take calculated risk on management in stock market. Every management would have some negative points. We need to take collective viewpoint based on our requirement and risk assessment. In case we find, the conduct of management doubtful, we shall ignore and focus on other 2999 listed companies.
To be specific about your query, I do not have answer about why right issue were raised. However, based on my past working, at least in my understanding, the managment is unlikely to do right issue at price of Rs 10 and increase stake by 1%. They could easily do private placement throughtwarrant and other various ways (like merging group companies/ hiving off assets) which are more simpler way to increase their stake by larger percentage than just 1%.
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