Thread by @caswapnilkabra

Before you see the high subscription numbers or the grey market premium for Easy Trip Planners, you must go through these red flags 🚩
A thread 👇🧵
Hit retweet to help aware more retail participants. (1/n)
#EasyTripPlanners #IPO

The company is not in profits as per SEBI guidelines in 3 of the past 5 years. Hence, the IPO shall have 75% reservation for QIP and just 10% for retail participants. This would mean more retail subscription (read trap). (2/n)

The promoters, Nishant Pitti and Rikant Pitte draw salary and reimbursement of close to 10cr. That’s huge against a profit of just 40cr. (3/n)

Chairman of the audit committee, Mr. Maxy Francis Assis Fernandes was appointed on July 2019 and he resigned on February 2020, in approximately 8 months. (4/n)

Company’s former CFO, Abani Kant Jha too resigned in just 16 months. And the company was without CFO between September 2020 to January 2021. (5/n)

Company has contingent liabilities to the tune of Rs.126 crores. 25% of these relate to income tax demand (6/n)

Company has entered into many unrelated businesses in past like movie production, coal and trading in shares. (7/n)

There has been misappropriation of funds by employee in past which raises serious questions on the internal control. (8/n)

The company has consistently delayed payment of Income Tax and GST in past as per the qualification by Auditor in the Audit Report. (9/n)

All the images are taken from the RHP of the company. (10/10)

@aditya_kondawar I read your analysis too. I feel the company fails badly on corporate governance part!

@manurishiguptha, @contrarianEPS another IPO to get great valuations because for retail investors unfortunately GMP > Corporate Governance!