Cheating,Fraud ,Manipulation ..etc are the buzz words of Dalal Street in recent times .Here is another one in this series in the form of an IPO.TUNIP AGRO is a company which filed DRHP with SEBI recently for raising funds through an IPO .This company claiming as the producers of Onjus brand fruit juice. Shareholders of another listed company may wonder how it possible ? Story of magic is like this .
Originally , 'Onjus' is a brand owned by another listed company Enkay Tex-o –food .This company had two divisions – Textile and Food.Enkay was in trouble due to mismanagement and poor performance of its textile division due to lack of working capital. Even then,its fruit juice division was a hit and lot of retailers invested their hard earned money in this company citing the bright prospects of food division Att that time there were many companies like Dabur and Parle was ready to buy out this brand at a huge value. Then ,promoters had two options- either to de-merge the food division and list it separately or sell the food division and save the textile division using the realization . But the promoters never ready to sell it at any cost or save the company by de-merging the food division. Later this company went for BIFR and subsequently suspended from trading . Without transferring the brand name or take over the company or any such arrangements ,now Tunip Agro is claiming that ‘Onjus’ is their brand. There are many questions – Why the promoters not interested to sell this brand earlier even there was many attractive offers ? .How a new company claiming a popular brand without paying anything to the original owner ? .What is the current stand of the promoters of Enkay Tex-o-food in this matter. It is really funny to see that in a latest statement by the old promoters of Enkay is saying that they have never registered 'Onjus' brand and no problem for using this brand by any other company and they are not going for any legal action against Tunip Agro.(See the following link - http://www.thehindubusinessline.com/2004/09/30/stories/2004093001210900.htm ).What is interesting is that the MD of Tunip agro Mr Siddhant Goyal is the son of Mr Tulsidas B Goyal who was the MD of Enkay Tex-o-food.This is the reason why they unwilling to sell the Onjus brand even there were many takers at heavy price and save Enkay Tex. This is a clear case of pre-planned cheating by the entire family to the minority share holders of Enkay Tex-o -food . SEBI SHOULD NOT PERMIT THIS TYPE OF CULPRITS TO COLLECT MONEY FROM PUBLIC AGAIN AND AGAIN.
Family owned business has always problem and will remain so.
ReplyDeleteThanks for analysis sir.
In 90's at the time of Harshad Mehta , My father bought the shares of Enkay Tex O food and we still got the shares of the company which is delisted . This is clrea cheating and SEBI wont grant it .Thnks a lot for the analysis.
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