Showing posts with label DEN NETWORKS YEARLY LOW. Show all posts
Showing posts with label DEN NETWORKS YEARLY LOW. Show all posts

Wednesday, August 17, 2011

DEN NETWORKS NOW IS 'TIN' NET WORKS. AT RS 42.80,YEARLY LOW.

The company came out with an IPO at Rs 205, almost two years ago.

The company had no track record of profitability, dividend payment. It had reported losses for the years 2008 and 2009 and had negative cash flows. The company was also heavily indebted. In spite of this, the promoters and the BRLMs were brave enough to fool the investors.

Neither the company’s past track record nor future business prospects justified the very high premium on shares.

The point to be noted here is that the average cost of acquisition of shares by promoters - Lucid Systems and Sameer Manchanda was Rs 0.40 and Rs 8.80 respectively. They are still at profit.

First choice had advised the investors to stay away from he IPO.