Tragic Story of Indian Value Investors

CG Power and Industrial Solutions was controlled by Thapar group. Today board decided to sack Gautam Thapar (Chairman of CG Power).

He was sacked due to detection of fraud in the Company. Now the tragedy.

Post sale of pledged shares Gautam Thapar (Chairman) owned 8574 shares out of 62 crores shares.

Mint newspaper reported:

Advances to related and unrelated parties of the company and group may have been potentially understated by ₹1,990.36 crore and ₹2,806.63 crore, respectively, as on March 31, 2018, and by ₹1,479.34 crore and ₹1,331.47 crore, respectively, as on April 1, 2017, a regulatory filing had said.

Also, total liabilities of the company and group may have been potentially understated by ₹1,053.54 crore and ₹1,608.17 crore, respectively, as on March 31, 2018, and by ₹601.83 crore and ₹401.83 crore, respectively, as on April 1, 2017, it noted.

Now the majority shareholder of the CG power:

No.	Name Of The Shareholder	% Holding
1	Vistra Itcl India Limited	21.63
2	Yes Bank Limited	12.79
3	Hdfc Trustee Company Limited-Hdfc Equity Fund	9.18
4	Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Frontline Equity Fund	8.94
5	Bharti (Sbm) Holdings Private Limited	8.3
6	Franklin Templeton Mutual Fund A/C Franklin India Equity Fund	3.19
7	Life Insurance Corporation Of India	2.25
8	Reliance Capital Trustee Co Ltd.A/C Reliance Multi Cap Fund	2.03
9	Idfc Sterling Value Fund	1.53
10	Vanguard Total International Stock Index Fund	1.08

Note: Above was obtained from www.moneycontrol.com website as on 29 August 2019

Above institution are steered by Management Graduates from Top universities, Chartered Financial Analyst and Chartered Accountants. Some of them may have spoken about value investing in Business Channels.

The below questions begs to get answers for following questions:

1. Value investing concepts, Moat etc.

2. Balance sheet analysis by the highly respected Research Analyst

3. The wise decision of Fund Manager in keeping silent for such a long time.

4. Long term investing and holding stock forever

In short one may be a highly qualified with degrees from Top Universities and Institutions, promoters know very well how to take all of them for a grand ride.

Worth Remembering

Dialogues from Movie Moneyball worth remembering:

On knowing the truth

Unfortunately, he can't do Stanford

and professional baseball.

He would have to pick one

or the other.

If he wants to be center fielder

for the Mets,

wants to be a baseball player,

he really needs to accept this

as life's first occupation, first career.

We're all told at some point we can

no longer play the children's game.

We just don't know

when that's gonna be.

Some of us are told at 18,

some of us are told at 40,

but we're all told.

But this is a once-in-a-lifetime

opportunity.

On being a first timer:

I know you're taking it in the teeth,

but the first guy through the wall,

he always gets bloody.

Always. This is threatening

not just a way of doing business,

but in their minds,

it's threatening the game.

Really, what it's threatening

is their livelihood, their jobs.

It's threatening the way

that they do things.

Every time that happens,

whether it's a government,

a way of doing business, whatever,

the people

who are holding the reins,

they have their hands

on the switch,

they go batshit crazy.