On second thoughts, the company seems to be going for a massive fund-raise since the shareholders recently have authorised:
- increase in share capital from Rs 11 cr to Rs 22 cr,
- increase in borrowing limits to Rs 30 crore and
- creation of charge / hypothecation on the assets of the company.
All these point to a massive fund-raise. No idea why they are raising funds since the management does not share much information. My initial guess would be for a big capex.
While it is frustrating to keep holding the shares without much information about the future plans, as an investor, I want to minimize regret compared to a “do nothing” strategy to manage the portfolio (that is, do not sell and do not buy something else instead). In the coming days, I may reduce my holding (given the current uncertainty) or increase (if the company provides positive information).
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