Goodwill Investor Education Initiative: 23-Jun-2020
Market news: India Cement episode: Bloomberg News Report
The equity shares of the India Cements were slowing going up to touch new high almost every day and when we gathered the reason for the same it was revealed in some Press news that the multi-billionaire Retail giant Mr Radhakrishnan Damani of D-Mart was said to have shown a lot of interest in the India Cements Ltd-South India’s largest cement maker by volume and having a good number of production units spread across and the news spread like wild fire. Result the shares of India Cements started a flare up and rose by 5 % to close at Rs 132.1 in BSE. The investors rushed to capture their share to make quick money in trades.
While it is true that D-Mart- Damanis through their various group entities do already have nearly 20 % of Equity holding interest in India Cements. Thus the Damanis are now the second largest shareholders in the company and the promoters group have 28.26 % of the total issued share capital. This information was available in the website of the regulatory authorities.
Institutional investors including Mutual Funds have already sold their stakes in this company during Jan-March quarter and it is now only 2.7 % and the stakes of Foreign Portfolio investors in this company stands at 12.85 %.
But now the Damanis have rejected the Bloomberg news report to say that the news was speculative and hence factually incorrect and that the news that Damanis are trying to up their stakes in the company to venture into taking controlling interest is absolutely false and the shares prices are again coming to normalcy.
Such episodes may mislead the gullible investors who throng the market based on unauthentic news but get disappointed as the s prices fall down subsequently.
It is therefore imperative that the investors should always be making investments based on facts and should seldom be in a hurry to enter into such stocks which are being manipulated by some vested interests.
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