Sunday, January 26, 2014

Glodyne Technoserve Ltd: Any Foul Play by Shantanu Rooj...?
Shantanu Rooj
Now here you would find that a company named Rinsel Technologies (India) P Ltd is holding 1.12% of the shares of the company. Though Rinsel Technologies Ltd is not an official promoter group company, the company seems to have deep connection with Glodyne Technoserve’s management as Shantanu Rooj, a Director of Glodyne Technoserve Ltd, was also a Director in Rinsel. 

From FY12, Annual Report we find that Shantanu Rooj, gets the 3rd highest salary in the company to the tune of Rs.34.77 Lakhs [After Mr. Annand Sarnaaik (Rs.54.50 lakhs) and Mrs. Divvyani A. Sarnaaik (Rs.43.54 lakhs)]. 

There are reports in the media that Shantanu Rooj is a long-term associate of Glodyne Technoserve's Chairman Annand Sarnaaik, right from its inception days as Paradyne Infotech, and Rooj is also an entrepreneur in his own might, having started the education company Broadllyne, which later Glodyne acquired.

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Now if we go by the available news on Internet, then we find that on  June 18, 2012 the FII, Merrill Lynch Capital Markets Espana SA SV bought 2,74,947 shares of this small-sized software & IT services company at Rs.417 a share, making the deal worth Rs.11.47 crore. However, this institutional buy didn't have much importance as the seller was identified Rinsel Technologies India Pvt Ltd which sold off nearly 2.75 lakh shares at the same rate.

Now it is interesting to note that, that the shareholding of Rinsel Technologies (India) P Ltd has steadily fallen from 2.86% in June, 2011 to the current (31st December, 2013) 1.12%. 

This means one of the main entities associated with Glodyne Technoserve Ltd, perhaps had knowledge of what was going on in the company at that time and was to come in the future. 

Also, inspite of doing such a treacherous move, Shantanu Rooj  kept on drawing huge salaries along with the two promoters, at the cost of shareholders' wealth. 

However, subsequently, the Shantanu Rooj steadily  held his holding percentage of shares in the company, though the shares of Glodyne Technoserve Ltd fell from Rs.400 plus to the current rate of Rs.8.82 (BSE). Does it not look like a planned sabotage by a person who is very close to the promoters of the company? 

Meanwhile, among many other brokerage houses who were aggressively giving a BUY on the scrip, the Firstcall Research in its in its April 19, 2012 research report gave a buy with a price target of Rs.438. While, Unicon Investment Ltd gave a buy call on its its March 30, 2012 research report for a price target of Rs.440. 

This, takes us to the moot point: Are the companies created to benefit only the promoters and their associates or the profit has to be equally share among the shareholders? Should the brokerage reports be believed?

With SEBI at the helm of the affairs, we will always find them crying foul, after the  horse has already bolted the door. The regulator should have pulled up Shantanu Rooj, for such a conduct and had also sent show cause notices to the brokerage houses, as to why their bets went so wrong; isn't it? But alas, this is SEBI, the India's WHITE ELEPHANT STOCK MARKET REGULATOR.