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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