Nu Tek India Ltd - 533015

Name of Company	Nu Tek India Ltd.
BSE Code	533015
NSE Code	NUTEK
ICICI Code
Established	1993
My Take	Dislike
Headquarters	Gurgaon
Promoters	Inder Sharma
Story	IPO in 2008. Raised $44 mi from GDR.
Sector	Telecommunications service
Sub-sector	Sub-contracting telecom infra projects
Website	http://www.nutek.in/
Positives	Numbers look great – market cap is less than reserves,
Negatives	Promoters have reduced their stake from 43% to  less than 10%. Promoters have issued warrants – but we know they need not be utilized. Company seems to be moving money into subsidiaries. Company says the European subsidiaries have not done well, so the company is closing them down. The company lends $750,000 interest free(is this ethical) to HK subsidiary – the money might flow into the promoters pockets. The company disinvested its stake in Turkey subsidiary as it was not doing well. According to FY08 report, company invested $200,000 into the Turkey subsidiary and HK$ 10,000 into HK subsidiary.  Announcement on foray into power sector – seems like just to draw attention when promoters exit. No dividend was paid after the first dividend. Board resignations - Ayub Y Younes and Sanjiv Kehr resigned in FY08, Amit Nitin Rane resigned in FY10 in an year of being appointed.
Peers
News
Price @ blogged	8.39 (05-Apr-11)
Cost of company	129.63 Cr market cap for a 15.87 Cr NP in FY ending Mar ' 10 makes it 8.1 times. This is for a company with 0 Cr debt and 158.16 Cr reserves
Group	Fraud
Growth