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:
2016-17 Shree Capital Services Share Transfer Registry SCSL-Share Transfer-FY2016-17
2016-17 Shree Capital Services Shareholding