Some red flags in the red herring prospectus of #mrsbectorsipo which I am sure would be ignored completely because to hell with corporate governance when we can make money easily in IPOs!
A small thread to point out the same🧵👇
#investing #investors #mrsbectors
A small thread to point out the same🧵👇
#investing #investors #mrsbectors
1. So, the company is paying a salary of Rs. 1 crore to Mrs. Rashmi Bector, spouse of the promoter and her role is not defined anywhere in the prospectus!
You can see this on page no.21 of the prospectus. I am attaching an image for the reference.
You can see this on page no.21 of the prospectus. I am attaching an image for the reference.
2. This is odd because the company has defined the roles of every other executive but not of Mrs. Rashmi Bector. You may read this from page 203 onwards. I am adding an image for reference.
3. For a company clocking profits of Rs.30 crores, this is a huge number. Also, the employee cost to sales of Britannia stands at just 4% compared to Mrs. Bector's number of 15%!
4. For those who already forgot the UPL episode, let me remind you that last week UPL corrected 14-15% in a day as the report of company paying 0.1% of profit as rent to promoter came out. All thanks to the whistleblower.
economictimes.indiatimes.com/prime/corporat…
economictimes.indiatimes.com/prime/corporat…
5. But sadly, I know HNIs will make the numbers reach sky by oversubscribing on the last day, pumping the GMP and making this IPO another success!
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