There is more drama in The Street than on Bollywood. Look at what all things have happened….

  1. Larsen & Toubro – at least the world believes it is a board led company, and it surely does not have a single identified promoter – so we have to accept it as a Professionally managed company. Files an application for buy back and the great regulator rejects it. I read the rejection letter and I realized that the regulator said something that I was not competent to understand. If any of you reading this blog understood it, please feel free to comment in the section below. Well, LnT this too shall pass. However till then you have to sit on the cash – which SUTI will happily take. Well.
  2. Jet Airways – salaries are being delayed and so flights are getting cancelled. I have no clue, but I refuse to travel by a falling airline (pun? well not sure – more like black humor). The share has not got decimated much, but of course it has taken a beating.
  3. Shanthi Gears has a buy back announced and many people are asking me whether SEBI can reject that too. I do not know and i cannot guess how a baboo(n) sitting somewhere will do what he wants to do. There can be no other reason why this share is available at Rs. 120 when the buyback date announced is 8th Feb, and the bb price is Rs. 140. Awesome arbitrage for the retail shareholder. Regulatory inconsistency is giving you this arbitrage opportunity, it is worth taking. NOTE: I am a shareholder and will not be participating in the buy back. Hey but I may change my mind, so caveat emptor.
  4. Essel Group: No clue what is happening but somebody who would have had to buy zee media for 100 will not buy it at 50 – or at least that is what I would offer. We can all speculate who that buyer is…..and we may be right.
  5. Dhfl group – old group busy with home loan lending at the bottom of the pyramid (also) dealing in other types of loans, etc. have not seen it default on its payment. I have not seen the rating agencies say anything. I have not seen RBI say anything (they must be collecting data I am sure). I am a shareholder of DFHL – and except for this decimation, they have been a value creator. However the Nbfc bubble was waiting for a pin – and they found it here. Other Nbfc which don’t have a problem have also fallen 40-70%. I guess it was over done on the way up, and now over done on the way down.

I am unable to understand many of the newer things that are happening. I find PR agents of some of these companies struggling and wondering what to do.

In case of Justice Sri Krishna and Chanda Kochhar I am conflicted because I have huge respect for both of them, and I am waiting to see the report. However, it is a report to the board, and I don’t think we will see it. If Jus Sri Krishna had to just answer the question “did she follow the processes and procedures…”, Jus Sri Krishna is OBVIOUSLY correct.

However, if the Question is “Did she benefit personally AT THE COST of Icici Bank while sanctioning these loans, and did she know about it” the answer may have been different. No, I am not trying to defend what she did, but I am not willing to condemn her.

My only message to Essel, Dfhl, Jet, Chanda, Icici bank…..is “this too shall pass”.

  1. Every damn thing will pass in this country and no one will ever gets punished for their deeds even if they live for 200 years. This will encourage every other promoter out there to get dirty. I am surprised this article does not mention BJP connection to DHFL. RBI will be looking at DHFL? BJP have their man heading RBI and elections are coming, so there are other things to do for the RBI.
    Meanwhile the hapless Indian investor is still dreaming about the India growth story regardless of whoever swindles as much as they can. Sahi hai.

  2. DHFL case reminds me of Monica Seles and Steff Graff Tennis story. The fan of Graff stabbed Seles at peak of her career and she never recovered from stabbing to return to competitive tennis. Just the gossip first time brought the stock 50% down and now an article. Big suffering to Promoters, Scores of investors and employees. This is what butchering does. DHFL already sold MF business and now selling education loan business. It is on the verge of becoming a nano cap and no one will lend to it. It will have cascading effect and could push to edge of bankruptcy. The article guy will claim it was correct and ‘told you so’. Harsh realities of power game.

  3. Do we want to sit and think whether Cobrapost is right or DHFL is right ? Is the (high) risk of putting money into this when investigation is going on, worth it? Is it not better to steer and stay clear from DHFL when in doubt.

    If Cobrapost scam exposure was just a rumor, how come the post is so detailed: in this article https://www.ibtimes.co.in/cobrapost-expose-says-dhfl-involved-rs-31000-crore-loan-scam-790968 (see flowchart – how the scam was pulled off). How can Cobrapost create a rumor in such detail with all names and story. Secondly if Cobrapost is wrong both dhfl and sebi will sue them. Why would they do this (mis)adventure ?

    We do not have to decide who is right and wrong and bet our money into it at this moment. Isn’t it?

  4. Serial defaults are happening one after the other. Most complex and peculiar is IL&FS (Indian Loot & Fraud Syndicate!). These companies are like septic tank. No amount of perfume is enough to remove the stink in short time.

  5. Well , Cobrapost pulled out all the filings by DHFL in public and govt sites, did their research and came up with such details that very conclusively show there was a scam. Also BJP govt decisions regarding party funding are so opaque and suspect. Not to forget BJP is trying to buy MLAs in Karnataka for 40 or 50 crores. They didn’t have to do that in Gujarat bcoz of slender majority.
    They also made RBI provide liquidity for NBFCs during ILFS saga when DHFL figured predominantly.
    We should not be so blind to all this. I hope there is some proper time bound investigation into this. Anyway the promoters don’t care about shares getting roasted bcoz they have taken away 31500 crores. Shares don’t have that much value.
    When there is so much lull in real estate how is DHFL growing like they did in last 2 years?
    Clearly by lending to shell companies they have grown.

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