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Collage Maker-06-Sep-2022-01
Stranded Retail Investors Ask Why MNC Sold INEOS Styrolution Stake To Original Promoter At Hefty Discount
This is an unusual story of an Indian promoter selling his company to a MNC and buying back the same company from another MNC. In 1997, on the eve of ABS Industries’ Silver Jubilee, promoter Rakesh Agrawal sold his stake to Bayer AG which rechristened it as Bayer ABS Ltd. Now, in 2022, on the eve of the same company’s Golden Jubilee, Agrawal has bought back the same company now known as INEOS Styrolution India Limited (ISIL), controlled by a MNC — INEOS Styrolution — by paying Rs 645 crore for 61.19% stake. The parent company INEOS Styrolution, a global leader in styrenics, recently announced that it had entered into an agreement for the sale of its entire shareholding in ISIL to Shiva Performance Materials (SPM) – part of the Vadodara-based Shiva Group. Incidentally, the promoter-chairman of Shiva Group is Rakesh Agrawal. But, what’s surprising is MNC selling its stake to the original promoter at less than one-third the peak price? How did MNC agree for a price of Rs 600 for a stock which was quoting above that price for the last 20 months? Since the current market price of the stock is hovering above Rs 900, no retail investor is expected to tender their shares. Hence, the open offer has become meaningless.  Clearly, this below-the-market-price transaction has hit the small investor’s hard and the deal warrants market regulators’ attention. By arrangement with https://investlive.net/.

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Editor’s Note: Short Post Is Here To Stay…

Time, they say, flies—and how true that is. Here we are celebrating our 5th Anniversary. Five years ago, when Covid-19 was wreaking havoc across the globe, I took a leap of faith and launched Short Post, India’s first website for Authentic Gossip. That was on January 31, 2021. I was convinced there was a clear gap in the market for gossip that was credible, sharp, and impactful—especially if told in just 250 words.

In this, I was fortunate. Scores of senior editors across diverse verticals bought into the idea and, in the process, gave wings to my dream. Quite honestly, Short Post could not have crossed these milestones without the unflinching support of its contributing editors. Like all start-ups, we have seen our share of ups and downs, but these editors have stood by us like a rock. I take this opportunity to doff my hat to them.

Thanks to their commitment, we have published close to 5,000 stories spanning politics, business, entertainment, and sports. I say this with pride: we made our mark as people who matter read us. “Small packs, big impact” truly captures the essence of Short Post.

We all know that Covid-19 has reset businesses worldwide, and the media sector is no exception. In the post-Covid era, investors have become more cautious and selective—and advertisers too. To compound matters, the entry of AI has disrupted the media landscape in equal measure. So far, we have managed to hold our ground, hopeful that some angel investors will take a shine to us.

What gives me confidence is this: AI cannot smell news—especially the gossipy kind. In other words, AI cannot churn out Short Post-type stories, no matter the prompt. That puts us in a safe zone. As someone rightly said, “AI is a co-pilot, not a pilot.”