It appears that the situation should be considered alongside the July Rights issue, which was valued at Rs. 141 Crores at Rs. 275 per share. Additionally, it’s worth noting that promoters are consistently purchasing shares from the open market.
From this perspective, it seems like promoters are aiming to accumulate as many shares as possible at a lower price, using various means, including potentially questionable tactics.
While this news might not be favorable for existing shareholders, it does suggest that promoters have a high level of confidence in the future growth of the business.
Looking at historical precedents, similar occurrences in other companies have been overshadowed by sustained business performance. However, it’s essential to acknowledge that while this may impact the stock price in the short term, market outcomes are never guaranteed.
Ultimately, how one interprets this situation depends on individual perspectives and risk tolerance.
Disclosure: Invested
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