September 18, 2024

Lotte India to Kick Out Loyal Shareholders at Rs 882/29 p per share

After a Reverse Book Building process the share was delisted w.e.f. 24-07-09. The discovered price was Rs. 540 /-

Shareholders to Oppose this compulsory acquisition at a throwaway price 

SEBI must intervene. Laws must be changed to protect the small share holders of Unlisted Companies.

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Blog Comments

 NCLT's Landmark judgement against compulsory acquisition of shares

 

Blog Comments

 

September 01, 2019

Regional Director , MCA , Mumbai Opposes HSBC InvestDirect 's Compulsory Buy Back of Non Promoter Shares

God Bless the Regional Director , Western Region , Ministry of Corporate Affairs , Mumbai , for safeguarding the interests of Non Promoter / Loyal Remaining shareholders of HSBC InvestDirect ( India ) Limited

http://www.mca.gov.in/MinistryV2/regionaldirectors.html.

In a landmark move the Hon'ble Regional Director opposed in NCLT for the Selective Reduction of Capital.

Last hearing of HSBC InvestDitect in NCLT was on 01/07/2019.

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If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Lotte India feels that Rs 882 /29 p per share  is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders


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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. 

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Games Promoters Play ( on Minority Public Shareholders ).

Promoters use clever moves to forcibly eject Public shareholders when ever they feel like i.e. when the Company has excellent future prospects or when it suits the Promoters. 


1 ) Selective cancellation of Non Promoters shares.


2 ) Conversion of Equity shares in to Redeemable Preference Shares.


3 ) Consolidation of face value of one share to a Higher Denomination .



In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.


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If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate .

 The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. 

For example if FCI OEN Connectors Limited feels that Rs.767 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. 

A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders


OLD POSTS
Jolly Board , which holds very valuable real estate assets in Kanjur Marg , Mumabi , is also following similar cheap tactic to oust loyal remainder small shareholders.

http://www.rareindianshares.info/2015/11/jolly-board-consolidates-face-value-to.html

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Suashish Diamonds does the same anti shareholders move :-

http://www.rareindianshares.info/2015/12/suashish-diamonds-to-kick-out-loyal.html

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Blog Disclaimer : Please Recheck  All Information . All information given in Good Faith. No Responsibility . 

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



LINK



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

Disclosure : The Blog writer in his / family names used to have holdings in Lotte India . So please make suitable " provisions " for any likely Over Optimism

NB :All information given in good faith. Please recheck every point before taking an investment decision.No responsibility with this blog / blog writer
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HUM MEHNAT KASH ISS DUNIYA SE
JAB APNA HISSA MANGEY GEY
IK BAGH NAHI; IKK KHET NAHIN
HUM SAARI DUNIYA MANGEY GEY

( Josh Malihabadi )
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 SAADA HAQ , ETHEY RAKH

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