Palred Technologies, a micro-cap which runs a website called latestone.com, would never have come to our attention had it not been for the fact that the duo of Porinju Veliyath and Ashish Chugh sent out a buy call for it in May 2015.
While Ashish Chugh did not refer to Palred Technologies by name, he did give out sufficient hints in his tweet which indicated that he is/ was bullish about Palred’s prospects.
At time when e-comm startups asking astronomical valuations,a listed e-com startup with "Proven"promoter available for free-0 debt-MCap=Cash
— Ashish Chugh (@hiddengemsindia) May 26, 2015
Porinju Veliyath bought a chunk of 2,00,000 shares on 27.05.2015. He has made a packet from the stock because while he paid Rs. 23.55 per share, the CMP is Rs. 79.
Porinju used the success of Palred Technologies to highlight his stock picking skills on a number of occasions.
Oh.Nifty down to 8000 again!
HPCL, Shreyas, Dish TV at around new highs; PALRED & SMATEX still circuit
Mkt is still stock picker's paradise!— Porinju Veliyath (@porinju) June 11, 2015
It has now emerged that Palem Srikanth Reddy, the Chairman and Managing Director (CMD) of Palred Technologies and Ameen Khwaja, the CEO, have been allegedly indulging in nefarious activities of insider trading.
SEBI’s sleuths have unearthed evidence which shows that the duo of Reddy and Khwaja were in possession of price sensitive information relating to a slump sale and interim dividend. They and their family members allegedly took advantage of the information to pocket mega bucks by buying and selling the Palred stock.
SEBI found that the trading pattern of the Khwaja entities was in clear deviation from their established trading pattern. The bank statements showed that substantial sums of money (far higher than their annual income) were invested in the Palred stock during the discussions relating to the slump sale.
The same is allegedly the situation with the family members of P. S. Reddy. They also allegedly pocketed large volumes of the stock prior to the announcement of the price sensitive information and later dumped the stock.
The surprising part is that Palem Srikanth Reddy traded in the shares of Palred Technologies in his own name during the price sensitive periods (i.e. slump sale of software solutions business to Kewill group and declaration of interim dividend of Rs. 29 per share). SEBI found that the average purchase price was Rs. 10.71 while the selling price was Rs. 16.82 per share.
At the end of a detailed analysis, SEBI found in its interim order that the duo of Reddy and Khwaja has allegedly made a gain of Rs. 1.65 crore from the illicit activity of alleged insider trading. It has added interest of Rs. 56.55 lakhs to this sum and directed the duo to deposit a sum of Rs. 2.22 crore by way of disgorgement of the alleged unlawful gains. SEBI has also expressed the apprehension that the duo may divert the unlawful gains and seek to defeat the direction of disgorgement and has frozen their demat accounts and bank accounts.
Now, we have to see what impact this has on the fortunes of Palred Technologies and whether it continues to be supported by ace investors or they dump it like a hot potato!
Porinju invests in rubbish, absolute desolate companies. It is akin to someone choosing Rahul Ghandi to lead young Indians. This is how bad the companies are. Yet he makes money. It has been known to all investors for years that insider info is what drives the investment strategy. Why is this article surprising. Big B openly purchases stock after company management inform of sensitive info. It is good that SEBI is at least pursuing the management and crooked directorship of such shady organizations as Palred.
Chugh has always been one such player. Now he’s got a partner in Veliyath. It’s blogs like these that put them up as gurus and lead gullible investors into their traps.
If you’re not afraid, publish this comment and don’t delete it.
Though this blog shows punters and insider info seekers like amitabh as ace stock pickers, they are no partial with negative comments.
On an other note how well amitabh suits for incredible India campaign with land fraud And security fraud?
Interesting perspective. How good is Aamir Khan with forced emotions paid in crores and aired under the name of Satyameva Jayate?
Thank you admin for posting my comment!
Aamir was very vocal about his emotions, he shouldnt have been. Apart from this one time incident he has a very clean record. I am not batting for aamir and don’t see amitabh as the best fit as well.
Srikanth Reddy belongs to YSR Jagan party. He also might be earning same way Jagan might did
He is from TDP, Better don’t comment without facts
http://srikanthreddy.com/aboutus/introduction/
These so called experts excelling with insider info should be monitored by SEBI. There are many such companies with managment who wants to rob off retail investors are in a prowl. Thts a common phenomenon in any bull market.