A2Z Infra

This company had issued shares during the IPO at Rs.400/share and today it is quoted at an unbelievable Rs.37. One might think that it’s a typo error and feel the need to relook at the price but it is indeed true; an over 90% loss. And talking about loss, the company has maintained its track record of losses and for Q3FY13, posted a net loss at Rs.18 crore compared to the loss of Rs.11 crore in Q2. A 11% sequential drop in net sales, an operating expense which is 114% of the net sales, a huge interest outgo; all these together did the company in. There was an exceptional income of Rs.6 crore which was profit made on sale of shares by the promoters to another company of theirs, bringing down their holding from 89.99% to 63.76%.

When the company had gone public, the main attraction in the company was the fact that Rakesh Jhunjhunwala had invested. He held 21.03% stake pre IPO, was an investor in the company since 2006, and was among the group of investors who sold part of their holding when the firm floated its public issue. He had earlier made around 2 times on his part exit. In Oct’12, he had resigned from the board but he still holds 19.92%stake in the company.