In December 2017, shares of real estate company Omaxe Ltd were trading at around Rs 230 apiece. Over the next few months, an ongoing family fight erupted in full public view with Sunil Goel, who had earlier been evicted as joint managing director, dragging his brother and group chairman Rohtas Goel to the National Company Law Tribunal, after accusing him of “financial mismanagement” and “fraudulent transactions”. Since then, the firm has eroded nearly 70% of its market value to the detriment of its public shareholders.
It is an all-too-familiar tale. Whatever the causes and the consequences may be for the …
Sundeep Khanna has, in a career spanning three decades, donned multiple hats across corporate and editorial roles, and is one of the foremost chroniclers of business in India. In his last assignment, he was executive editor of the financial daily Mint; for The Morning Context, he will write on corporate governance in India every fortnight in his newsletter, Friction.
newsletters+sundeep.author@themorningcontext.com