 |
| Shares of the Indaibulls Real Estate were down 3.5 percent reacting to the report, while those of Indiabulls Power were down 4.7 percent. |
The brokerage has alleged that both Indiabulls Real Estate and Indiabulls Power have sacrificed corporate governance for the benefit of their controlling share holders. It has made a sell call on all Indiabulls group stocks across the board.
“We believe that disclosures at IndiaBulls Real Estate Limited (“IBREL” or the “Company”) and IndiaBulls Power Limited (“IBPOW”) are unreliable and that the sole purpose of IBREL is to bilk institutional and retail investors for the benefit of select insiders,” the brokerage has said.
However, the IndiaBulls Group retaliated and said the allegations are factually incorrect. The group os planning on initiating criminal proceedings against the brokerage as such “Intentional errors result in losses for shareholders.”
Shares of the Indaibulls Real Estate were down 3.5 percent reacting to the report, while those of Indiabulls Power were down 4.7 percent.“The controlling shareholders are running the organisation as a piggybank, while proclaiming propriety and espousing credibility.
The association of reputed institutions, individuals and organizations with the Company is vexing to say the least,” it said in the scathing report. The brokerage said it has analysed 57 group companies, including private companies of the controlling shareholders, 201 financial and legal documents including annual reports, annual returns, various schemes of arrangements filed in Indian courts, stock exchange filings etc.
IT has said any valuation of either Indiabulls Real Estate and Indiabulls Power is “bound to be erroneous”, it said adding institutions and individuals should sell all Indiabulls group stocks as the companies have sacrificed corporate governance “to enrich” the controlling shareholders.
Source: www.firstpost.com
No comments:
Post a Comment