Midfield Industries was another overpriced small cap IPO in the Indian market which listed on 4th August.This stock not so strangely has almost doubled in price since its listing as the stock gets gamed like the other small cap junk IPOs in the Indian Market.I had written about the Real Life Manipulation of Aster Silicates […]
Now Blackstone has decided to gamble on India’s Power Deficit Story by investing $300 million for an undisclosed stake in the company.With investment plans of $6.5 billion and parent company sinking under loads of debt,Moser Baer Projects desperately needed equity which has been provided by Blackstone.Its previous track record in Solar and Optical Media does not inspire a lot of confidence.But India’s 8-9% Growth Rate is like a Rising Tide which will lift all sorts of Boats.Blackstone is perhaps gambling more on that rather than on Moser Baer.
India’s Business and Political Elite continue to mock the Indian Legal System through loopholes and expensive lawyers.I had written earlier in a post of how Satyam Scandal Kingpin Ramalinga Raju enjoyed luxurious facilities at hospitals despite his jail term.He had managed to avoid questioning by the authorities through excuses of bad health and now he […]
To reduce its expense Vedanta will only pay Rs 355/share to minority shareholders in the open offer while offering Cairn Rs 405/share .This will include Rs 50/share for a non compete agreement.This seems a ruse to shaft minority shareholders as I don’t think Cairn poses much of a threat to Vedanta from further Oil Explorationin India.I don’t know how Vedanta’s returns from the Cairn’s oil fields can be impacted through Oil Exploration by Cairn’s parent in the future.Indian stock market regulator had earlier rejected Heidelberg’s premium to be paid to SK Birla Group when buying Mysore Cements stake.The controlling premium has been paid in earlier M&A by foreign promoters to Indian promoters.The area of controlling premium remains a grey one and I think it is being exploited by Vedanta to lower its open offer price.It remains to be seen if SEBI rules in the favor of the minority shareholders.
The stock might offer some short term profits for high risk traders on a dead cat bounce,but it is definitely not a fundamental pick.Unless the company really makes significant progress on the revenue and orders front,it is not a buy in my book.
The Board has lashed out at IL&FS for forgetting the strictures under which the company was given to the management of IL&FS.The government appointed directors had also been silent at the flouting of these norms.Note the company has already sold the preferential shares in the company without the approval of the CLB.Now IL&FS finds its reputation tarnished due to the jinxed Maytas.I am not superstitious by nature but it definitely seems that Maytas brings bad luck to its promoters.