Is Elnet technologies suffering from huge promoter discount?
POSITIVES:Elnet technologies owns an IT park with lettable area of area of 2.1 lacs sq.ft on 3.16 acers of leasehold land in chennai.Elnet appears as a good investment with Mcap of 21crs, net debt of 13crs, rental income of 17.5 cr, operating cash flows of 7.5cr and minimal capex requirements.
NEGATIVES:Shri Shanmugam Thiagarajan (formerly Shri Thiagaraj S Chettiar), promoter of Elnet has aprox 25% stake in the co. Mr Thaigaraj was involved in financial irregularities, CBI probe and company law violations during his tenure as MD of Elnet. Surprisingly his name also appears among the major defaulters of RBF (Royapettah Benefit Fund- multi crore deposit scam )for 12.5cr default.
Promoter`s wife Mrs. Unnamalai Thiagarajan is current MD of the co. An amount of 3.6cr unsecured loan given to Shanmugam Thiagarajan is disclosed under related party transactions....
posted by jagadish @ 7:22 AM
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