Mint reviews public companies' proxy activism

Investors move HC over NSE IPO delay - 1. Investor Group’s Legal Action - Petition in Delhi High Court - The People Activism Forum, along with other investors, has approached the Delhi High Court, seeking Sebi’s approval for the NSE IPO. Sebi’s Delay in Response - Sebi has not provided a valid justification for withholding the no-objection certificate ( NOC ), even three months after NSE reapplied on August 27, 2024. 2. Investor Concerns - Unlocking Shareholder Value: Existing shareholders are unable to unlock the value of their shares due to the IPO delay. Public Participation: The delay also denies the general public the opportunity to invest in NSE through the open market. 3. Performance of NSE Shares in the Unlisted Market Rising Share Value: NSE shares have doubled in value this year, rising from ₹900 to ₹1,800 (post-bonus adjustment), fueled by IPO expectations. Bonus Share Issuance: In November 2024, NSE issued four bonus shares for every one share held. 4. Key Stakeholders in NSE - Major Shareholders - #LIC: Largest shareholder with a 10.72% stake. Stock Holding Corporation and SBI Capital Markets: 4.4% each. State Bank of India: 3.23%. Aranda Investments (foreign): 5%. Prominent Individual Investor : D-Mart founder Radhakishan Damani holds a 1.58% stake. 5. Background of Legal Dispute - Initial Petition: The People Activism Forum filed a writ petition on May 3, 2024, requesting court intervention in the NSE IPO process. Sebi’s Condition: Sebi asked NSE to reapply for the NOC, which was done in August 2024, but approval is still pending. #Nseipo #nseindia #SEBI #Delhihighcourt #DMart @UnlistedZone @rswaminathan82 @NSEIndia @ashishchauhan

🔍 Know Your Rights as a Shareholder in India 🔍 As a shareholder, your investment comes with rights that protect and empower you. Here’s a quick breakdown of key rights that can make a difference in your journey with BSE Limited or any other company.👇 1️⃣ Receive Key Documents: Get copies of Audited Financial Statements, AGM Notices, and Annual Reports. 2️⃣ Access to Company’s Constitution: View the Memorandum and Articles of Association anytime. Link here ➡️ 3️⃣ Active Participation & Voting: Participate in Annual General Meetings, vote, appoint a proxy, and demand a poll if needed. 💼 4️⃣ Right to Transfer Shares: Challenge refusals to transfer shares. 5️⃣ Call for AGM: Apply to NCLT if the AGM isn't held. 6️⃣ Appoint & Remove Directors: Take control in appointing or removing company directors. 📜 7️⃣ Inspection Rights: Inspect minute-books and statutory registers during business hours. 8️⃣ Dividend Entitlement: Receive dividends as declared by the company. 💰 9️⃣ Appoint Auditors: Exercise your right to appoint statutory auditors. 🔟 Preemptive Rights: Get preference over outsiders in new share issues. 1️⃣1️⃣ Engage with the Board: Ask questions, propose items on the agenda, and propose resolutions at AGMs. 1️⃣2️⃣ Protection from Mismanagement: Seek action against oppression and mismanagement by reaching out to the NCLT. 💬 Stay informed, stay empowered. Knowing your rights is the first step to making the most of your investment! #ShareholderRights #InvestorAwareness #BSE #CapitalMarkets #ShareholderProtection #InvestSmart

The Hindenburg Report, published on August 10, 2024, has captured significant attention in financial markets. This report follows an earlier release from January 25, 2023, which alleged that the Adani Group's shares were overvalued by 85%. Despite the Adani Group's dismissal of these claims as "unsubstantiated speculations," the report led to a decline in their stock prices. In the latest report, Hindenburg reiterates accusations of misconduct against the Adani Group and: o  Links these allegations to Mrs. Madhavi Puri Buch, the Chairperson of SEBI o  Suggests that Mrs. Buch and her husband hold stakes in foreign entities involved in money laundering activities connected to the Adani Group. o  Claims Mrs. Buch’s husband's advisory role at Blackstone facilitated the launch of India’s first REIT IPO. o  Asserts that Mrs. Buch’s alleged connection with the Adani Group has hindered SEBI's ability to investigate the conglomerate's alleged wrongdoings. Both the Adani Group and Mrs. Buch, along with her husband, have categorically denied these allegations, labeling them baseless. SEBI issued a press release on August 11, 2024, stating that 22 out of 24 investigations into the Adani Group have been completed and urging investors to remain calm and exercise diligence, while suggesting that Hindenburg Research may have held short positions in the securities mentioned in their report. Rumors suggest that Hindenburg did have short positions in Adani Group shares and made substantial profits by closing these positions after the report was released. For long-term investors, the report's impact might offer an opportunity to invest in Adani Group stocks at lower prices.

#GQG #Partners, a US based investment firm sought to assuage investor concerns. However it's stock nosedived as much as 23% following the #US #prosecutors and #SEC charges against Gautam Adani and other Adani Group executives. Rajiv Jain’s GQG Partners is a significant investor in Adani group stocks. GQG stock fell to #AUD 1.98 on the #Australian #Securities #Exchange, down 20%

Brief details: Appeal at Apex court The appellant-Jyoti Limited applied for listing of certain equity shares to the Bombay Stock Exchange whihc was declined stating "appellant had not taken in principle approval from the Stock Exchange and that the appellant had not even taken the approval of the shareholders for the allotment of the shares to the Asset Reconstruction Private Limited" The above order of the BSE rejecting the application of the appellant for the listing of shares was upheld and confirmed by the Securities Appellate Tribunal Grounds; Section 9(1) of SARFEASI Act 2002, permits RARE to take measures such as conversion of any portion of debt into shares of the borrower company. The appellant company had not proposed to increase the subscribed capital rather it is RARE that has done it, no approval of shareholders is necessary. Facts: Here it is evident that the appellant company had entered into discussion with RARE and it was agreed upon between the parties to convert part of its outstanding debts of Rs.32.80 Crore into equity shares.Resolution passed by BOD was not endorsed by shareholders of the company.application to lsit the shares was by Appellant Company and not by RARE. Accordingly, as contemplated by Section 62(1)(c) of the Companies Act, 2013, the approval of the shareholders would be mandatory before the shares are accepted for listing on the BSE. Finding of SAT that the approval of the BSE is necessary in view of Regulation 28 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, is clear and we do not have a different opinion. Special resolution of the shareholders is necessary which is lacking in the instant case. This statutory appeal under Section 22 F of Securities Contracts (Regulation) Act, 1956 is devoid of merit and is dismissed.

Analyzing Investment Holding Companies: Key Factors to Consider In my blog post on investment holding companies, I have tried to explain the key factors investors should consider when analyzing IHCs and ICs: - Dividend policy and distribution of earnings - Quality and track record of management - Alignment of majority and minority shareholder interests - Transparency and complexity of the holding company structure - Regulatory environment and potential for value unlocking By carefully evaluating these factors, investors can make more informed decisions when investing in holding companies trading at discounted valuations. The blog post aims to provide meaningful insights for analyzing investment holding companies beyond just the discount to net asset value. I encourage you to read the full blog post to gain a deeper understanding of the nuances involved in analyzing this space. The insights shared can help investors navigate the opportunities and risks associated with holding company discounts. #Investmetholdingcompany #IHC #IC #BBTC #KICL #KAMAHOLDING #SUMMITSECURITIES

Hindenburg vs. Adani vs. SEBI: The Latest Twist This weekend, the financial world was abuzz as Hindenburg Research, a high-profile short-selling firm, leveled serious accusations against SEBI’s chairperson, Madhabi Puri-Buch. Hindenburg claimed wrongdoing, but SEBI and Madhabi Puri-Buch have swiftly countered these allegations. Short sellers, often seen as the stock market’s vigilantes, profit by betting that stock prices will fall. They sell high and buy back low, a strategy that, while sometimes uncovering corporate flaws, can also be driven by less noble motives. Hindenburg first grabbed headlines in January 2023 with allegations of stock manipulation and fraud against the Adani Group. This sparked a dramatic plunge in Adani’s stock prices, with some companies seeing drops of up to 80%. By mid-2024, however, Adani's stock had largely rebounded. In March 2023, the Supreme Court of India tasked SEBI with probing these claims. By early 2024, SEBI had nearly finished its investigation, though the results are still under wraps. The story took another turn in early July when Hindenburg disclosed that SEBI had issued a notice accusing them of not revealing certain information and potentially profiting from misleading statements. The drama escalated on August 10 when Hindenburg accused SEBI Chairperson Madhabi Puri-Buch and her husband of ties to offshore funds linked to Adani, suggesting potential conflicts of interest due to her husband’s role with Blackstone, a major real estate investment firm. SEBI and Puri-Buch were quick to respond, urging calm and clarity. SEBI assured that Madhabi Puri-Buch has always been open about her financial interests and has stepped back from any decisions where conflicts could arise. Madhabi Puri-Buch dismissed the claims as unfounded attacks aimed at damaging her reputation and SEBI’s credibility. IIFL, mentioned in the accusations, also refuted any connection to Adani. This latest chapter underscores the double-edged nature of short selling. While these firms can spotlight genuine issues, their tactics can also provoke controversy and confusion.

I started a New 5 Days Series Naming “ The Commerce Thing “ ( Second Article ) Today I want to share about “ Equity “ This term is often used in finance to represent ownership in a company, typically referring to the value of shares issued. The Indian Companies Act 2013 recognises 7 types of companies based on size, no of members, control,liability, listing, intended business activity and country of origin. 1. OPC( one person company) 2. Private limited company 3. Public company 4. Sole proprietorship 5. Partnership 6. Limited liability partnership (LLP) 7. Section 8 company (NGO) Equity generally refers to Public company/ Public limited company. Beacause they are authorised to raise money from public for their business operations . Companies can issue three types of shares Preference shares, Equity shares and non-voting shares. A share, also known as stock or equity, is a unit of ownership in a company. When a person buys shares in a company, they become a shareholder and part owner of the company. 🎯Equity share holders are the owners of the company with high potential returns as well as risk tolerance. 🎯Preference share are for cautious investors who want a steady and consistent returns on their investment. 🎯Non-voting share are issued to family members of Directors or Board members to raise money without diluting control as they do not carry voting rights in general body meetings and other matters. The return given to shareholders is called’ Dividend’ . Let’s understand with the help of an example Company has Rs 10 lakh of Net Profit ( after deducting all expenses) and Prefernce shareholders has 10% returns ( which is fixed at the time of issue) will be given first. Rest profit goes to equity shareholders as per decision on how much to reinvest . So equity shares are either in maximum profit or loss , that’s why they are called as risk- takers as well. The amount a company pays out in dividends relative to its net income is called the dividend payout ratio. At the time of investment in shares, this is an important element to consider. #equityshares #preferenceshares #shares #publiclimitedcompany.

If #GQG is pressured to sell even a fraction of its stake, it could set off a domino effect in the market, spooking other investors to follow suit. And that’s the precarious situation GQG, #LIC, and other big investors are in — a classic Mexican standoff. Or a situation where multiple parties are locked in a confrontation, and no one can move without putting themselves at risk. No one wants to make the first move, knowing it could destabilise the market and hurt their own interests, causing them immeasurable losses. So the big question is, will GQG stand its ground as it did last year? Back in 2023, when the #Hindenburg report sent #Adani stocks into a tailspin, it was GQG that stepped in with a $1.9 billion lifeline. That vote of confidence helped stabilise the situation, with Adani stocks eventually recovering and surpassing pre-Hindenburg levels. Or will mounting client pressure force GQG to retreat this time, potentially triggering a full-blown crisis? #CapitalMarkets #business