BCB Finance – A Mere 208 Shareholders
DSIJ Intelligence / 27 Mar 2012
Another factor that is not looking good for the company is the shareholding pattern (post listing). Of the total shareholding, promoters account for 69.22% while the remaining 30.78% is held by the public. However, when we look at the numbers of shareholders, it is only 208. This makes it look more like a sort of private placement than an IPO.
A smaller number of shareholders may result in some manipulation in the price of the stock. Further, the volume traded is also quite low from the day of listing, which can be seen in the following table. Note that the minimum lot was of 4000 shares.
Quantity of Shares Traded (Delivery)
| Date | Delivery Quantity | Minimum Quantity For Trading | Effective Trade |
|---|---|---|---|
| 26/03/2012 | 36,000 | 4,000 | 9 |
| 22/03/2012 | 36,000 | 4,000 | 9 |
| 20/03/2012 | 56,000 | 4,000 | 14 |
| 19/03/2012 | 132,000 | 4,000 | 33 |
| 15/03/2012 | 28,000 | 4,000 | 7 |
| 14/03/2012 | 8,000 | 4,000 | 2 |
| 13/03/2012 | 276,000 | 4,000 | 69 |
There are other strong factors listed in the IPO Analysis and Post Issue Analysis that reinforce why investors should stay away from the counter. The promoters are involved in legal proceedings related with certain disputes. Also, the business of the company is margin funding, providing loan against shares and trading in securities, and the growth for the same does not look promising. Further, with the company offering shares at higher valuations, it doesn’t seem to be attracting investors. The financial numbers posted by the company are also not healthy. Hence, we advise investors to exit the counter (if they hold shares in it) or to avoid the counter altogether.
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