Nirmal Kotecha, one of the promoters of Pyramid Saimira Theatre, appears to have been the direct beneficiary of the forged Sebi letter.
The Mummy tumbled out of the Pyramid on Monday.
Nirmal Kotecha, one of the promoters of Pyramid Saimira Theatre, appears to have been the direct beneficiary of the forged Sebi letter that hit the markets two weeks ago.
The company informed exchanges that Kotecha had offloaded over 6% of his stake in market sale on December 22 and 23.
The sale happened in 14 transactions executed through different broking houses — Indiabulls Securities, Kotak Securities, JM Financial, IL&FS, India Capital markets and little- known Vertex securities.
Eleven of these sale orders were executed on early hours of Monday, when PSTL shares hit the upper circuit of Rs 82.90 as traders chased the stock after DNA Money and other business papers quoted a ‘Sebi letter’ ordering the company to make an open offer at Rs 250.
The shares dived after the company’s CMD PS Saminathan denied receiving any such order. By then, Kotecha had managed to sell over 15 lakh shares.
For Monday’s (December 22) sale, he realised a value of Rs 11.67 crore at an average price of Rs 77.5.
On Tuesday (December 23), Kotecha offloaded shares at a much lower price of Rs 61, pocketing Rs 1.72 crore, pushing the scrip to down circuit again.
In effect, using the bounce on account of the surge in demand caused by the widespread dissemination of the forged Sebi letter, he offloaded 17.86 lakh shares, or 6.32% stake in the company, at an average price of Rs 74.90. This is just 50 paise less than the counter’s close on previous trading day at Rs 75.40.
In the weeks preceding the event, Kotecha had sold small chunks of shares at much higher impact cost. For example, when he sold just under 1% on November 19 at a price of Rs 50, the stock dipped nearly 6% to close at Rs 47.4.
Kotecha’s volume on December 22 accounts for over 60% of the delivery volumes of nearly 25 lakh shares, making clear he was the major supplier of PSTL shares in the market.
When the Sebi letter drama was being staged, the PSTL CMD was crying aloud that big business groups and competitors were hammering his company’s stock price. He even demanded a CBI enquiry.
The declaration filed by the company should help throw light on Saminathan’s claims. Saminathan was not available for comment.
Kanhu Charan Sahu, company Secretary, PSTL said, “No buyer has informed the company. Only the seller, NK, has informed the company of the sale and we have intimated the same to the exchanges.”
He added that the inter-se transfer, which the company had announced earlier, had lapsed as it did not happen on the date earlier announced. “No fresh announcement has been made,” he said. .
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