I did some further digging and found below information in the FY23 Annual report of the company. Company had posted 60 crores of profit in FY23, 50% of it came from the subsidiary ‘Woodpecker Distilleries & Breweries Pvt Ltd’ (shown below). 21% of this subsidiary has now been taken by the promoter for meagre 30 crores. It means they have valued the subsidiary at PE of less than 5.
If this is not day light stealing then I don’t know what is. As per them, the whole company should be valued at 280 crores and not 2000 crores (current market cap). I still believe that the promoters should get some discount while raising such capital, but this is not looking good. The shareholders have suddenly lost 10% of annual earnings (20% of profit generated by the subsidiary) in return of 1.5% equity value (30 crores for a market cap of 2000 crores).
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