@Sanjeev_Bansal The company promoters purchased 20% of a subsidiary that earns (50% of overall earnings 30cr out of 60cr) at a pre-money valuation of 150cr i.e. 5x ! How can the minority shareholders not have a say in this? This does seem majorly unfair to the minority shareholders ! It appears this is setting the stage to merge the subsidary into the parent co at inflated valuations to further increase the shareholding of the founder (which in itself is not bad) but this is clearly at the expense of the minority shareholders. Does the dilution of shares in a material subsidary not need explicit minority holder approval?
@manhar How can you focus on the earning power of the overall company if you cannot even predict that the founder may further dilute the listed company’s share of this subsidary ? How does one get comfort they will not do this to the other subsidary? The absolute value of the public market purchases are meaningless (<50cr worth)
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