 "Takeover best option for OnMobile?")
OnMobile Global stock is on an uptrend today as it has shot up 5.8 percent in trade today after Arvind Rao, its CEO & Managing Director resigned post corporate governance issues in the company.
According to PN Vijay, Portfolio Manager, the best way out of this sticky situation is to get taken over by another company as this will also give investors a way to exit their shares.
“Unfortunately this is one more case of corporate governance, it is not the business model to be faulted, it’s a corporate governance issues” , he told CNBC TV-18.
Many investors were interested in the company because of its excellent business model as it is in the application space for mobile and that is one of the fastest growing areas.
However, the stock has fallen by a sharp 65 percent in the last one year. PN Vijay points our that the markets immediately give a thumbs down to companies with corporate governance issues. This was also seen in the stock of Sun Media and Kingfisher Airlines.
For the year ended March 2012, the company’s sales rose by 18.76 percent to Rs 638 crore while net profit fell 4 percent to Rs 83 crore.
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