THIS IS A HUMOR COLUMN – AND THIS IS A PARODY – DO NOT BUY AVANTI FEEDS…

Suddenly I found a scrip called Avanti Feeds quoting at Rs. 600. I was stunned because I used to know this company ONCE UPON A TIME.

In the late 1980s Avanti feeds came out with an IPO and the issue was about to bomb at the IPO. So the company approached one of the best fixers in the IPO market and asked him to fix it.

So he approached a few ‘Mumbai’ brokers who could EASILY fix such failing IPOs. Coming from a Hyderabad promoter with a TN fixer was not unusual, and the negotiations began. I was offered Rs. 2-3 per share. All one had to do was subscribe to the share at Rs. 10 (for which you got a brokerage of Rs. 2) and the management PROMISED that the share would be listed at Rs. 20 and you could sell it in the market.

NO LOCK IN, NO NOTHING – AND YOUR CUSTOMERS GOT 100% RETURN.

Only problem was it was in the fish business which meant my Jain clients would not touch it. Fine with us, we were not in the elite brokers who were doing this fixing.

However a few friends jumped at the opportunity and put in the money. True to their word the share got listed and MOST of the people sold it off for Rs. 20. Many of them held back and sold it at Rs. 50, Rs. 60, etc. after holding it for a few years. Company also paid dividends and it did not look like a bad company.

I too tracked the company for a long time (but with my no Hyderabad rule!!) I did not hold more than 1000 shares of this company at any time. I remember i sold off at a nice profit. Was never serious about this company, till I saw the price recently at Rs. 500!

I HAVE NO CLUE HOW THE PROMOTERS ARE, I have no holding now, I just penned some thoughts. I have not seen the PnL, B/S NOTHING….

I HAVE NO VIEW, I do not look at a B/s if it does not have a market cap of at least Rs. 5000 crores….

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  1. But Subra,
    you do look at companies with market cap >500 Crs!

    Is an additional zero in the last line a mistake here?

  2. actually it is a long criteria list – market cap, location of office, impact cost, – so largely it throws out a lot of shit. However for a Sabero or Liberty kinda share or say Shanti Gears – change of management is a very imp criteria for looking at them. I have been a Shanti Gears watcher when it was 70crs. market cap. Never built a position til……lol

  3. Dear Subra Sir,
    Sorry for playing Devil’s advocate.
    Are you not afraid of take down notice by a company under the pretext of “baseless, defamatory accusation”?

  4. this transaction did happen in the 1980s…so 1. it is not baseless. It is not defamatory – I am not saying ANYTHING about the current management.

    Not accusing the management of ANYTHING….just a lil surprised why NOBODY has asked me “How can a co. with market cap of Rs. 100 crores be a BLUE CHIP?”…..

  5. Sir, valuepickr is a forum where stock investing enthusiasts come and discuss stocks. This forum stands for presenting & discussing stocks instead of just recommending/pumping. Ppl on this forum discuss stocks, meetup management & even do ground level investigation

    Below is the thread on Avanti Feeds on valuepickr:

    http://www.valuepickr.com/forum/not-so-hidden-gems/330005261

    Avanthi feeds is in loss upto a few years back when tiger shrimp failed but this company is major supplier of Vanmai shrimp seed and this shrimp farming became a major in India in last few years due to failure of this shrimp in other shrimp producing countries due to a virus and thereby shrimp prices shoot up in international market.

    Agree that Avanthi Feeds is in stratosphere in terms of price.

    Disc: Not related to valuepickr.com, but a member of it & got benifited by it

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