In an earlier piece, I had reported that the MMB punters are speculating that the savage fall in the price of Sharon Bio-Medicine’s stock was caused by a lender selling off pledged shares to recover the dues.
The punters are right. Today, Asha Mohan Kala, promoter of Sharon Bio-Medicine, filed a declaration stating that Axis Bank has invoked a pledge created by her with respect to the shares of Sharon.
Asha Kala has stated that she holds 61,38,600 shares in Sharon (5.81% of the equity) of which 50,00,000 (4.74%) are encumbered. Of this, Axis Bank has invoked the pledge on 3,68,871 shares on 15.12.2014. The balance pledged shares held by Axis Bank are 46,31,129 shares.
It is obvious from the severe nature of the fall in the stock price that much more than 3,68,871 shares have been sold by Axis.
Under Regulation 31(3) of SEBI (SAST) Regulations 2011, the disclosures have to be made with seven days of the invocation of the encumbrance.
So, we have to brace ourselves for more such disclosures to come.
One possibility is that Asha Mohan Kala may have pledged her shares so as to be able to buy more shares of Sharon. She may have dumped her own shares as well in a desperate bid to raise funds to pay off Axis Bank.
The one relief point is that this crash in the stock price is not related to the fundamentals of Sharon Bio-Medicine.
At this stage, we must note that Daljeet Kohli is probably the victim as well. When he diligently checked with the management as to whether anything is wrong with the Company, they told him everything is “normal”. In fact, on the date that Daljeet made the inquiry (16th December), Axis Bank had already invoked the pledge (on 15th December).
So, we have to give Daljeet the benefit of doubt. His recommendation is/was based on Sharon’s fundamentals. He could never have anticipated that Asha Mohan Kala would be so reckless as to cause invocation of the pledge and the severe loss of shareholder’s value and confidence.
With so many dubious stories of owners pledged shares, analysts should never recommend such stocks in the first place. Just avoid such companies because one never know why the owner has pledged the stock.
So guys stand up and Loud applause to Daljeet.
I don’t have power left to stand now. If he does not stop following Sharon along with -ve comments in every speech for lifelong (like many people do for ADAG irrespective of valuation of Rpower,Rinfra or Rcap) about Sharon and AshaKala, It is still doubtful that Daljeet was not involved with Asha Kala in taking the share price at higher levels..Then She let Axis bank invoke the pledge shares. Axis bank kept selling from 90 level to 25,may be they will take it to 15 or 5 or 1, u cant predict the lows in pledge shares selling. And she must have started or will start accumulating at desired price.
I wish, I’m wrong and it was only game from Axis bank and no other party was intentionally involved.
Whatever be the reason, Its one more proof that sebi is still not working at its best in favor of retail investors.
Retail investors have least/slow thus ineffective means to know about both growth and decline breakouts.
FIRST CAPITAL is another co recommended by this group!!
“Capital first” has been recommended by many-dozens of analysts due to its promoter and CAGR etc. I’m buying this since it was 200.
DJ is the last person in the q.
SEBI should do an independent enquiry and make it public that which shareholder sold how many shares, when and at what price.
whr is the FUCKING promoter????? explain a-z of the co , u motherfucker…..
SEBI should cap the percentage of shares that can be pledged by any promoter at 10% to prevent the reckless promoters from causing havoc in the market.
That can not happen neither it should happen. Promoters are people like us and they also have right to invest their money wherever they want.
Rather than complaining better learn when it is right time to exit your positions. Buy and hold forever mentality has resulted in losses for several investors.
This was a clear case of “pump and dump”.
One thing is sure -either
(1) promoters cheated Daljeet+Retail investers
OR
(2) Promoter+Daljeet cheated retail investers
In any case promoters are the main culprit and retail investors are the victims.
http://corporates.bseindia.com/xml-data/corpfiling/AttachHis/0FBA3ADB_14F9_426C_8567_F893018528C4_175804.pdf Please have a look at latest shareholding report on 19th july, 2015 8:18 am of Asha kala…and interpret.