March 02, 2016

Chettinad Cement Consolidates Face Value to Eject Small Loyal Shareholders


Chettinad Cement Corporation Limited Delisted in 2013 @ Discovered rate of Rs.720 /- ( Face Value Rs. 10 ).


Promoters , now , hold 98:39 % of Equity.

In order to compulsorily buy out shares from the remaining small shareholders Chettinad Cement  proposes to consolidate the Face Value of its share from Rs. 10 /- to Rs. 2,00000 /-.

Small shareholders holding less than 20000 shares of Rs. 10 each and those holding in not multiples of 20000 would see such Non 20,000 multiple holdings get reduced to fractions .

There are , at present ,2886 small Non Promoter shareholders , 
Such fractions would be disposed off by the Promoters.

Although the Promoters have indicated a price of Rs.720 per Rs. 10 /-share , this is not fair value as this was the Exit price 3 years ago.

The consolidation of Face Value seems to be a ploy by Promoters to Buy shares at a manipulated  Low rate ( throw away price.)

Valuers are Vivro Financial Services Private Linited..

The Valuers etc are all engaged by the Managements and cannot be considered as Unbiased or totally Fair. Affected shareholders should be allowed to have their own valuers / Valuation Reports. 

SEBI should enquire in the matter. 

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For further case studies  vis - a - vis small shareholders , please consider the following links :-



LINK



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General Warning : Investment in Shares Can be Injurious to Your WEALTH

Disclosure : The Blog writer in his / family names has  holdings in this Company So please make suitable " provisions " for any likely Over Optimism


NB :All information given in good faith. Please recheck every point before taking any investment decision. No responsibility with this Blog or Blog Writer

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