A2Z Infra

This company had issued shares during the IPO at Rs.400/share and today it is quoted at an unbelievable Rs.23 and its 52-week high stands at Rs.36.40. 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 94% loss. And talking about loss, the company has maintained its track record of losses and for Q2FY15, it posted a loss of Rs.35 crore, and it had ended FY14 with a loss of Rs.195 crore. Sequentially, in Q1, the company had actually posted a net profit at Rs.48 crore and that only thanks to the tax credit of Rs.77 crore. Otherwise the track record of consistent loss making continues. Its lower sales, increased operating costs and higher interest outgo keeps the company in the red.

The company has stated that it is facing liquidity issues due to delayed realization of receivables and delay in the commencement of commercial production at its biomass based power plants. The company had since then made an application for CDR and in March 2014, it was approved. 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, and was an investor in the company since 2006 but he was amongst 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 now holds 4.04%stake in the company.