Premji buys 10% stake in Subhiksha
Ajim Premji has bought 10% stake in Subhiksha for Rs. 230 crores. Subhiksha was planning an IPO to raise Rs. 350 crores earlier, but given the current market situation decided to raise money from investors (wondering why Premji and not PE investors?)
ICICI Venture earlier invested in Subhiksha (reportedly, they own 24% stake) and as per NDTV, Premji would buy ICICI’s stake.
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Funny . looks like a just in time funding .
http://www.livemint.com/2008/09/05001546/Subhiksha-not-paying-some-bill.html?h=A1
Unless I am understanding it wrong, this is just a deal between Azim Premji and ICICI venture. Some equity will change hands but Subhiksha doesn’t get any money out of it. So their search for more investment will be on for the time being.
Abhaya
This is corporate fraud committed by RS , ICICI and AZIM . By buying 10% stake at 230 crores the company will be valued at 2300 crores and RS can packet 1500 crores and ICICI can packet about 600 crores. Luckily it has not materialised and Indian public are saved.