Media Company ka gol mal and confusion

Gaurav Mercantiles Ltd got its name changed to Quint Digital Media Ltd with new Promoters as well.

But confusion, wrong disclosure and reduction in promoters' stake is baffling. As per BSE, on 23-7-20, company's issued equity capital is shown at 40 lakh equity share of Rs. 10 each fully paid up. Balance Sheet as at 30-9-20 also shows the same number of issued equity shares. But BSE SHP as on 30-9-20, shows 20 lakh share as issued equity. How to reconcile this 20 lakh vanished shares in SHP?

Increase in equity happened partly by conversion of 20 lakh CCPS in equal number of equity shares by 30-9-20 at an effective rate of Rs. 42.50 per share. On 25-5-19, company issued 1.45 crore Warrants, at Rs. 42.50 per Warrant, to be converted in equal number of shares within 18 months. But, on 14-11-20, only 69.75 lakh Warrants were exercised in conversion to shares, while 75.25 lakh Warrants got forfeited or lapsed.

Share is now ruling at Rs.343, and Warrant holders having paid Rs. 10.62 per Warrant, have not found it worth converting to shares? Means notional loss of over Rs. 230 crore to Warrant holders. Something not seen acceptable and unable to understand. Even Promoter stake seen reduced to 53% now from 68% in July,20. Also, Non promoter, being Vespera Fund, Mauritius even did not exercise for 6.15 lakh Warrants.

Something fishy or confusion or gol maal. So, do not get trapped in this stock, by buying at  Rs.340 or even at Rs. 300 plus.