Krishna Lifestyle Technologies Ltd., one of the most talked about stock in the penny stock circles. We get many queries related to the company, with many asking if it has the potential to be one of those "Business Insight" recommendations. We have had few reservations regarding the prospects of the company, its performance and it's balance sheet, and thus did not suggest it as one of our recommendations. However, the recent developments will ensure that we may never consider Krishna Lifestyle Technologies Ltd. as our long term recommendation.
Talking about the recent developments, the Tayal Family and several of the listed entities controlled by the Tayals directly or by their friends and associates have been banned by the SEBI from all stock market-related activities. For those of you who are not familiar with the Tayal's, they are the Promoters of Krishna Lifestyle Technologies Ltd. The suspension definitely brings the Promoter's and the company into bad light.
As per the recent order by SEBI the banned entities include Pravin K Tayal, Navin K Tayal, Sanjay K Tayal and Saurabh P Tayal, while the listed entities barred from the market include Jaybharat Textiles, Eskay K'n'IT, KSL & Industries, Ashahi Fibres and Krishna Lifestyle Technologies. Note that even Krishna Lifestyle Technologies Ltd has been banned and if one is to look into the Shareholding Pattern of Krishna Lifestyle, many of the above names can be found.
Just to put into perspective, the suspension is on account of fraudulent cornering of shares of Bank of Rajasthan by the Tayal's and the other entities.I won't go into further details of Bank of Rajasthan, because the important point here is the suspension of Krishna Lifestyle and their Promoter's. This may not have any effect on the performance of the company, but as I said earlier that they have brought a bad name to the company and to their image.
What this will do is that it may hamper company's fund raising activities especially through Private placements, because any investor would look into the quality of the management. Also it is unlikely that any renowned Institution would pick up stake in the company. Considering the above mentioned facts, I would suggest investors to avoid the company.
Talking about the recent developments, the Tayal Family and several of the listed entities controlled by the Tayals directly or by their friends and associates have been banned by the SEBI from all stock market-related activities. For those of you who are not familiar with the Tayal's, they are the Promoters of Krishna Lifestyle Technologies Ltd. The suspension definitely brings the Promoter's and the company into bad light.
As per the recent order by SEBI the banned entities include Pravin K Tayal, Navin K Tayal, Sanjay K Tayal and Saurabh P Tayal, while the listed entities barred from the market include Jaybharat Textiles, Eskay K'n'IT, KSL & Industries, Ashahi Fibres and Krishna Lifestyle Technologies. Note that even Krishna Lifestyle Technologies Ltd has been banned and if one is to look into the Shareholding Pattern of Krishna Lifestyle, many of the above names can be found.
Just to put into perspective, the suspension is on account of fraudulent cornering of shares of Bank of Rajasthan by the Tayal's and the other entities.I won't go into further details of Bank of Rajasthan, because the important point here is the suspension of Krishna Lifestyle and their Promoter's. This may not have any effect on the performance of the company, but as I said earlier that they have brought a bad name to the company and to their image.
What this will do is that it may hamper company's fund raising activities especially through Private placements, because any investor would look into the quality of the management. Also it is unlikely that any renowned Institution would pick up stake in the company. Considering the above mentioned facts, I would suggest investors to avoid the company.
Note: The stocks discussed at MPS thru blog postings are neither a part of “Business Insights” issue nor a “Penny Stocks” which we reco/publish for paid subscribers. These are just stock specific views by MPS team; one MUST do the due diligence before doing any investment based on our reco.
- Ekansh Mittal, Lead Associate - HBJ Capital Services Pvt. Ltd
Email: Ekansh@hbjcapital.com
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