NBI Industrial Finance – Fraud on Minority Shareholders-April 2021

Full report : NBI-Fraud on Minority Shareholders-April 2021

How the Promoters of SHREE Cements SHORTCHANGED the Minority Shareholders of NBI?

  • Listed investment holding company of Shree Cements.
  • Promoters of Shree Cements hold 64.72% of NBI.
  • In FY2016-17, NBI sold off shares in unlisted companies, including Shree Capital Services Pvt Ltd, another group holding company, to promoters at huge discount of 97% to fair value. Shares with a fair value of at least Rs. 3,077 crores were sold off to other promoter entities for only Rs. 89 crores.
  • No rationale for selling to promoters. There was no need to exit as NBI did not need the cash.
  • Related party transaction that was not put to vote by minority shareholders.
  • Valuation report not disclosed to shareholders. No disclosure on sale apart from in the Annual Report.
  • Even today, this demonstrates the mal intent of the promoters that have surreptitiously short-changed and perpetrated fraud on minority shareholders. Should be noted by investors of Shree Cement Limited.
  • Mr. Ashok Bhandari, an Independent Director, who was on the Board of Directors that took the decision to sell the unlisted shares at a huge discount, has been appointed Chairman of the Board in September 2020.

Needs thorough sou-moto investigation by SEBI and reversal of transactions for fairness to minority shareholders.


Full report : NBI-Fraud on Minority Shareholders-April 2021

2016-17 Annual Report of NBI: NBI_Annual_Report_2016-17

2016-17 Annual Report of Shree Capital Services: Shree Capital Services-FY2016-17 Annual Report

2016-17 Shree Capital Services Share Transfer Registry SCSL-Share Transfer-FY2016-17 SCSL-Shareholders-List-FY2016-17

2016-17 Shree Capital Services Shareholding SCSL-Shareholders-List-FY2016-17