What went wrong in KOUTON?
http://www.capitalmarket.com/if.asp?L=hotpursuit&M=cmedit/story2-0.asp?sno=425835 Koutons Retail India was locked at lower circuit of 20% at Rs 215.85 on BSE on reports credit rating agency ICRA has suspended its "LB+/A4" ratings assigned to Rs 300-crore fund based facilities of the retailer.
A separate media report suggested that Koutons Retail's promoters have pledged shares for the second time in the last three weeks. Koutons promoters, who hold a 63.9% stake in the company, have pledged as much as half of their stock. The company has begun to default on loans, including a facility provided by Kolkata-based Allahabad Bank, according to the report.
Promoters pledging shares
In the last three weeks, the promoters of the company have pledged 12.3 lakh shares. This accounts for over 4% of the existing equity and over 6% of the total promoter holding. As on date, the total shares pledged by the promoters exceed 30% of the existing equity and 48% of the promoter holding.
Stock listed around Rs.500 rallied till Rs.1085 and today closed @ Rs.215 Down freeze and Investor should take informed decision when they select stock as many stock are quoting @ high valuation and as missed out feeling is making investor take lesser known companies.
Warren Buffet has said, “Only when the tide goes out do you discover who's been swimming naked. And he has also said In the business world, the rearview mirror is always clearer than the windshield.
