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Dec 28, 2011

Great Offshore - business


This stock is in its 52 week low. Is it a good time to buy?
Approximately 2900 Cr debt as of March 2011. This is the reason, I think GOL is finding new bottoms. Profits have declined, but this company is not making any losses as such. 


Bharati Shipyard is the promoter
In 2009, Vijay Kantilal Sheth, the promoter of Great Offshore Ltd (GOL), was in trouble when lenders made margin calls under a share-pledge deal. The promoters of Bharati Shipyard stepped in to help Sheth with the required cash.
Although Bharati Shipyard’s PC Kapoor maintained that it was only a strategic investor, it subsequently wrested around 14.89 per cent stake in GOL, making itself the largest shareholder, and launched an open offer for another 20 per cent. This was the first instance in the history of corporate India, where pledged shares were invoked.
The battle to acquire GOL intensified after ABG Shipyard made a counter offer to acquire 33.8 per cent. Both continued mopping up shares from the market and revising the offer price in a takeover battle that lasted over six months. It finally came to an end when ABG Shipyard exited the race and Bharati Shipyard took control of GOL.
Source: Business Standard

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