Playing with “chor” promoters is like playing with fire – you can’t complain of burnt fingers
Porinju’s ill-fated love affair with Lloyd Electricals alias LEEL is well known.
Normally, Porinju outwits the chor promoters and rakes in multibagger gains from them.
We have seen a number of instances in the past like KRBL, Kitex, Shreyas Shipping, HSIL etc where Porinju has bravely gone into the chors’ den and returned with massive riches.
In fact, Porinju has himself documented his numerous escapades with the chors where he has emerged triumphant.
Don’t trust the 'experts' advising you, ’never buy penny stocks & bad companies’ – many of them are Industry leaders: pic.twitter.com/9UqMOjZz3R
— Porinju Veliyath (@porinju) August 5, 2015
When I accumulated 5% of Kitex @ Rs.5 to 8 and a significant stake in Cera @ ~75 (bonus) under PMS, many clients objected due to bad mngt!
— Porinju Veliyath (@porinju) January 5, 2015
Last year, when I bought Fin Cable @ 30, KRBL @ 20, Orient Cem @ 30, Granules @ 110, HSIL @ 80, SRF @ 150, they were bad guys!!
— Porinju Veliyath (@porinju) January 5, 2015
Recently when I was buying Shreyas Shipping @20, Force @425, Zicom @ 105, 8K Miles @110, many of you warned me about management quality!
— Porinju Veliyath (@porinju) January 5, 2015
When I accumulated 8% stake in Geojit personally at a mktcap of Rs.3 Cr, most of my well-wishers were uncomfortable!
— Porinju Veliyath (@porinju) January 5, 2015
High-Quality BlueChip Investing has its merits & higher safety, and trust me, you don't need a fund manager or advisor/distributor for doing it – provided you have passed SSC.
— Porinju Veliyath (@porinju) June 29, 2018
However, in the case of LEEL, the tables were turned.
Porinju aggressively bought the stock like there was no tomorrow.
At the peak, he held a massive 8% of LEEL’s equity.
Leel Electricals in focus@porinju Equity Intelligence India stake in Leel Electricals has been increasing
Feb 2018 7.35%
Dec 2017 5.52%
Sep 2017 4.92%@CNBCTV18Live— Nigel D'Souza (@Nigel__DSouza) February 2, 2018
However, when the promoters diverted the funds from sale of a division to their own personal companies, Porinju realized he had been badly outwitted.
He did not take it well.
He documented his agony in a heartfelt letter to the distinguished clients of his Equity Intelligence PMS.
Don't believe that in the long term everything will be fine!
Even if Porinju likes the stock2004 – Stock was Rs. 40
2017 – Rs. 340 (Porinju buys!)
2019 – Rs. 40Porinju on why he bought this stock
Bought more and owned 8% of the co
and What went wrong!https://t.co/UMgyl37wFQ— Nagpal Manoj (@NagpalManoj) January 12, 2019
He publicly accused the promoters of committing “daylight robbery“.
“What has happened in Leel is day-light robbery. The company got nearly Rs 1,550 crore in 2017 through a deal with Havells. Yet, it has been reduced to a market-cap of Rs 40 crore. Investors will loose trust in the markets. One has to look where has the money flowed,” he said.
SEBI swings into action – directs forensic audit of LEEL
SEBI is reputed for its proactive stance.
It is headed by dynamic personalities like Madhabi Puri Buch.
Madhabi Puri Buch was earlier the Executive Director of ICICI Bank and is well-versed with the shenanigans of alleged chors and fraudsters.
We saw earlier how the seasoned investigator busted a massive stock scam (see You Will Earn 350% Gain From Intraday Trading In Stocks Says Scamster, Novice Investors Give Him Rs. 105 Crore).
SEBI directed that a forensic audit of LEEL be conducted by Deloitte, the global firm of CAs, to detect whether any funds have been siphoned off by the promoters, as alleged by Porinju.
SEBI has also made it clear that if the management is found guilty, they will face the full wrath of the law and be subjected to criminal prosecution.
Ulta Chor kotwal ko dante?
It appears that LEEL’s promoters are tough as steel.
They are not intimidated by either Porinju Veliyath or SEBI.
Instead, they have launched a counter-attack against Porinju and filed a complaint with SEBI.
This was revealed by Ashish Rukhaiyar of HBL.
Leel Electricals feels that well-known investor Porinju Veliyath is intentionally deflating the company's stock & wants SEBI to pass a restraining order against him till the probe into alleged siphoning of funds from the company is completed. My story.https://t.co/ftVQFyeSRL
— Ashish Rukhaiyar (@ashishrukhaiyar) June 5, 2019
LEEL has alleged that Porinju is trying to “arm-twist” it.
It has also claimed that Porinju is “intentionally deflating the stock by spreading rumours” before the forensic audit is completed.
LEEL has requested for a ‘gag’ order against Porinju.
“SEBI may investigate specifically that the price of the scrip has been falling and he has been deflating, depressing the price of stocks of LEEL by spreading baseless allegations,” the complaint stated.
“We would therefore be grateful if the SEBI could investigate and in the interim, using its wide powers in the interest of investors and securities market, restrain Mr. Porinju Veliyath from speaking to the media on the complaint in this matter,” it was added.
Now, the ball is in Porinju’s court. We will have to see whether he has any tricks up his sleeve to get LEEL’s promoters to disgorge the funds allegedly siphoned off!
never quote porinju’s quote. he is a failed pms manager. his portfolio return in last 5 years are in negative against sensex return of 12% CAGR. just recollect his stock selection . LEEL, HCL INFOSYSTE, ASHAPURA MINCHEM,ANANTRAJ,JINDAL HISSAR, EMKAY , KAYA, VA TECH WABAG, ANANT RAJ , GVK, TATA COFFEE, liberty shoes, ETC. a few years back he used to post the return of his pms in comparison of nifty returns but that is missing right now. not wise to follow him none of his stocks are multi bagger , wheras most of his stocks are down more than 70%.
Hilarious state of affairs. Adding insult to injury. Chor blaming the victim after causing losses. Making mockery of the law.
Right. Without publishing annual report, not clarifying about proceeds from sale of its unit, its being very aggressive.
Looks like ‘Chor’ prompters became stronger after looting the sale proceeds. Flush with new money, they would have hired a good lawyer to fight the case. These guys can come up with huge number of excuses to get away from the SEBI investigation or Company law. Example, they can blame on ‘auditors quitting’ for not coming out with annual report or results. For circumventing the sale proceeds, they could have created few shell companies in their cronies name as service providers and got paid. Also some annual perks to the top mgmt could be twisted to extract as much as possible.
Meanwhile, in collusion with Operators and some big shot investors, the entire story could be ‘U’ turned to make the stock price hit 100 UCs in future. We are living in highly manipulative world and anything is possible.
Block deal, sudden rise in stocks, are very doubtfully activities in market, some few in numbers playing and looting, loosing trust in market