His company may be going through tough times but Moser Baer founder Deepak Puri is far from throwing in the towel. Recently, the chairman of the world’s second-largest optical storage media manufacturer infused fresh capital via a preferential allotment of 10 million shares. This latest infusion is the final tranche of the ₹ 40 crore that Puri was asked to bring in by his lenders as part of the CDR programme. The first tranche of ₹ 20 crore for 20 million shares came in May, 2013 and the second was ₹ 10 crore for 10 million shares in November, 2013. Puri’s persisting belief is despite the company’s continuing troubles. For the 9-month ended FY14, the company posted a consolidated loss of nearly ₹ 695 crore on revenue of ₹ 1,14 crore. Finance costs of nearly ₹ 320 crore continue to bleed the company. The debt overhang is considerable and even the standalone interest expense of ₹ 62 crore is nearly equal to the company’s total market cap of ₹ 64 crore. A one-time stock market darling, poor investor sentiment now plagues the stock. While every institutional investor has fled, Puri’s latest infusion has increased the promoter stake to nearly 33%.
Keeping the faith
While every institutional investor has fled, Puri’s latest infusion has increased the promoter stake
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