GMM Pfaudler’s promoters put their interests first
Twice in 26 months, the Gujarat-based company’s promoters announce decisions that give ordinary investors short shrift.
Why read this story?
Editor's note: On 16 December, shares of Gujarat-based industrial equipment maker GMM Pfaudler—trading post the 2:1 bonus issue announced in July this year—fell over 14% to close at Rs 1,644. The sharp drop was a reaction to news of one of the promoters divesting their stake in the company. A similar episode happened a little over two years ago. In September 2020, in the course of two weeks, the stock slid from Rs 5,926 to Rs 3,613—a 40% drop. Then, the promoters had come out with an offer for sale of shares. Spread 26 months apart, the two episodes are no coincidence: They happened at the exact time when the company’s stock price peaked. In the 2020 divestment, one of the promoters sold their stake to acquire an asset that they were eventually going to give back to the company. In a tweet in September 2020, Deepak Shenoy of Capitalmind quotes the promoter as saying that their stake in GMM Pfaudler, which had come down to about 22% after the sale, would go up to 30% following the handover of the asset. …
More in Business
You may also like
Can SEBI get a good social media team for investor education?
With social media becoming a crucial source of financial guidance, it doesn’t help that many first-time investors remain strikingly unaware of regulations meant to protect them against unregistered entities.
Mumbai's worsening garbage crisis, and the company in the thick of it
The Kanjurmarg landfill, operated by Antony Waste Handling Cell Ltd., is safe from the axe for now. But its fate remains a major source of worry for the company's shareholders and the city's residents alike.
India’s listed SME space is a ticking time bomb
If recent investigations by SEBI into cases of fraud by listed SMEs are any indication, a scam running into lakhs of crores is in the making, putting the entire financial system at risk.
