Babu George Valvi , living in Kochi claims his stake holding in PI industries (formerly named as Mewar Oil and General Mills Ltd) the story starts about in early 1978 , in April ; Babu G Valvi and four other realatives of him bought 3500 shares approximately about 2.8% stake holdings of Mewar Oil And General Mills Ltd , an unlisted company of the time based in udaipur. Babu and his family lost interest later seeing no such reward from the shares and gradully (after few decades) they forgot about the investment.
Years passed by and about 43 years later, in 2015
Babu’s son reassembling his fathers activities found the share certificates. And it further came to his knowledge that the 2.8% stake holdings at current valuation is about 42.47 lakh shares worth 1448.5 crores as the company now has approached a market cap of 50,000 crores . He contacted the PI industries(the new identity of Mewar Oil and Mills ltd), whose to which company states that they have issued duplicate certificates to Valvi family and the family has sold it to others in september 1989.
In answer to this Babu told that they haven’t asked for any duplicate certificates.and as per the Companies Act,for issuing duplicate shares the shareholder has to give affidavit in favour of company which they haven’t given and never asked for duplicate shares.
PI industries in 2016,sent his officials to Babu to solve the matter,Babu also says that they have confirmed the genuiness of the original certificates and told him that they will discuss the matter with chairman.
After no action from the company Babu contacted the chairman to which his reply was absurd.later Babu took the matter in knowledge of Securities and Exchange Board of India.But PI industries replied with the same comment that Babu’s share were transfered to others.
Babu thinks that may be a fraud is initiated by some higher officials of the company without giving the top managements any clues.
Babu is still in hope that SEBI will make some settlements in coming future.
However final conclusion is still not declared.
This news has poped off and been covered by many bloggers recently. And babu and his story is providing both curiosity and some learning for everyone how go through his story.
Well! Curiosity is obviously but what’s the lesson burried in here?
- First lesson: Always give your investment a long life and not just keep an eye on it every next day if you want a eye poping return. Like Babu who got a multibagger return after about 43 years.
- Do keep a proper record of your investments whether bond,share,real estate papers, precious metals stc
- Always provide nomination so that your family can easily inheret your investments
Stay tuned for further story of Babu .
Till then, make yourself aware of informations available all around.