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Not saying history repeats exactly. But veterans know that when operators gain control over both debt & float, price discovery can become very “managed”.
Retail investors should study promoter history & past before getting carried away by turnaround narratives.
Sanjay Dangi - Man behind Authum Investment & Infrastructure
A fund not widely known.
NITCO was drowning in debt.
Quietly acquired 97% of NITCO's outstanding debt
Then converted ₹1,037 Crore of debt into equity, 49.3% stake in NITCO.
NITCO stock moved from ₹26 to ₹126 within a year
27 vs 181.
In a healthy and fairly valued market, you usually won't see situations like this unless something serious happens.
but, in India, since most of the holdings are with promoters, such scenarios can occur anytime and might last for quite a while.