Oh you poor fellow... turbine failure?

Check the stock price of Softpro. It has been going up in the last three months without any obivious reasons. A company that has a turnover of around 10 Cr. has market cap of 360 Cr.

The rumor in the market is that Bala Reddy and his operators have been shorting ICSA and using the money to jack up Softpro. I am not sure if he will try and merge the two companies at some point in time. The promoters only have 20% stake in ICSA.

Also an interesting co-incidence is that the ESS sale started turning dry around the same time as Satyam scandal broke out.

Originally posted by rajeshb Check the stock price of Softpro. It has been going up in the last three months without any obivious reasons. A company that has a turnover of around 10 Cr. has market cap of 360 Cr. The rumor in the market is that Bala Reddy and his operators have been shorting ICSA and using the money to jack up Softpro. I am not sure if he will try and merge the two companies at some point in time. The promoters only have 20% stake in ICSA. Also an interesting co-incidence is that the ESS sale started turning dry around the same time as Satyam scandal broke out. Promoter intentions don't look straight here.

I also feel that the promoters' intentions are not good. I checked annual report of soft pro ( fy 08-09), they were busy issuing warrants , preferential shares to the promoters, and pref shares to non-promoters. Incidentaly almost all the non promoters are Reddy. They had passed a resolution to raise upto 1100 cr when their turnover was only 8 cr. !! Most of their software income was from ICSA. After reading all this i did not go in detail.
I have checked out of the stock today.

Clearly that was a smart move....This is not an investment grade company