Thanks to all the contributors for updates for such a long time. I am just looking for some answers to some of the questions that I have in my mind about APL Apollo promoters. If you track the company one would find that there has been promoter selling and reducing their stake almost every quarter. If the business prospects are still very good as they project in quarterly calls, why would they reduce their holding to such low levels instead of holding or trying to acquire more. They are taking the capital from here and infusing into the NBFC that lends to APL Apollo tube customers. Is it a scheme to pump up the sales by financiing the buyers and push the stock price up and sell it at the same time while make the money safe by pushing it to NBFC which is a private entity? How long can this sustain? What happens when this credit facility is no longer available to distributors or dealers? Would they continue to buy? I understand that sometimes Promoters sell (like they did in Page industries while it was growing) but here it is of big proportions. Also, there seems to be a gap between what the promoters are telling about business and what they actually do to their stake in business. While everything else looks good, this aspect remains a red flag of mine and that is a reason I am looking for unbiased answers for the same.
| Subscribe To Our Free Newsletter |
