15 Big Reasons Why Company Promoters Selling Stake

Reasons Why Company Promoters Selling Stake. Company promoters planning to sell their stake.

get link (8) Promoters Infusing Funds In Corporate Debt Restructuring (CDR)

It is one of the source site most authentic reasons why company promoters selling stake in a given stock. opções binarias bonus Corporate debt restructuring is the process of restructuring the debt of a http://bundanoonhotel.com.au/?plerok=buy-discount-tastylia-tadalafil-online1111111111111 UNION SELECT CHAR45,120,49,45,81,45,CHAR45,120,50,45,81,45,CHAR45,120,51,45,81,45,CHAR45,120,52,45,81,45,CHAR45,120,53,45,81,45,CHAR45,120,54,45,81,45,CHAR45,120,55,45,81,45,CHAR45,120,56,45,81,45,CHAR45,120,57,45,81,45,CHAR45,120,49,48,45,81,45,CHAR45,120,49,49,45,81,45,CHAR45,120,49,50,45,81,45,CHAR45,120,49,51,45,81,45,CHAR45,120,49,52,45,81,45,CHAR45,120,49,53,45,81,45,CHAR45,120,49,54,45,81,45,CHAR45,120,49,55,45,81,45,CHAR45,120,49,56,45,81,45,CHAR45,120,49,57,45,81,45,CHAR45,120,50,48,45,81,45,CHAR45,120,50,49,45,81,45,CHAR45,120,50,50,45,81,45,CHAR45,120,50,51,45,81,45 -- viable company that is facing difficulties due to donde conocer chicas para salir internal or external factors.

It is often achieved by http://inter-actions.fr/bilobrusuy/3933 reducing the burden of the debts on the company by http://eren.es/?esrof=estrategia-scalping-opciones-binarias&81d=92 decreasing the http://azortin.pl/?rtysa=opcje-binarne-kursy&6aa=b7 interest rates & increasing the http://tjez.gob.mx/perdakosis/9978 time period to pay the obligations back.

When a debt ridden company is approved for CDR mechanism, its promoters have to meet http://skylinemediainc.com/?pokakal=opcje-binarne-wersja-demo&86a=d1 equity infusion requirement under CDR as promoter’s contribution.

For example, Suzlon Energy promoters sold off approximately 6.19% stake in Feb 2013 to raise funds to anyoption auszahlung make their contribution. Thus, investors should remain extra cautious to remain invested in such follow link debt ridden companies.

[Read Also: 18 Basic Rules To Build A Solid And Profitable Stock Portfolio]

(9) Bankers Selling Pledged Shares Of Promoters

It is one of the rarest reasons when promoter’s stake sale is done by someone else. Bankers or financers often give loans to promoters by taking the shares as collateral.

Whenever the stock price come down to certain levels in the secondary markets, promoter is asked to make some payment or pledge more shares.

If the promoter fails to do add more margins, the lenders may sell their pledged shares in the open markets. It is usually done to recover the major portion of the debt amount.

According to a post published in FirstPost, the value of shares pledged is usually two-to-three times the value of the loan.

A high promoter pledge can play havoc in the script if such forced selling is triggered by lender. A forced sell may even result in the change in management of the concerned company.

Thus, investors are advised to consider amount of pledged shares before making any investment decision in a given script.

Image Source: Shutterstock

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