Indiabulls vs Veritas: CEO's reply raises more questions

Countering Veritas’s sell rating on all Indiabulls group stocks, CEO Gehlaut says the group’s listed companies appreciated by 2025 percent since an initial public offering in 2004.

FP Editors August 16, 2012 16:09:33 IST
Indiabulls vs Veritas: CEO's reply raises more questions

Indiabulls is doing everything it can to undo the veil of secrecy around it, which was revealed by Canadian research firm Veritas.

The group has put out full-page advertisements, given interviews and even sued the authors of the report, in its attempt to come clean.

In a report in The Economic Times, CEO Sameer Gehlaut of the “12-year-young” group has termed the report from Veritas a “bundle of lies”.

Countering Veritas’s sell rating on all Indiabulls group stocks, Gehlaut says the group’s listed companies appreciated by 2025 percent since an initial public offering in 2004.

This in itself is a problem. “The market views anybody who grows so rapidly — particularly in their infancy stage — with suspicion,” Arun Kejriwal, market analyst and CEO of investment consultancy firm KRIS, has been quoted as saying in the report.

Indiabulls vs Veritas CEOs reply raises more questions

The group has put out full-page advertisements, given interviews and even sued the authors of the report, in its attempt to come clean

Gehlaut has more numbers to reveal. He says “Indiabulls Financial Services (IBFSL) is the second most profitable mortgage finance company in the country and the 46th most profitable publicly listed firm; that Indiabulls Real Estate Ltd (IBREL) is the least leveraged realty company in India; that two mills bought in Mumbai for Rs 745 crore have created some Rs 6,600 crore of value”, the report says.

On allegations of political connections, he insists that the company has no special connections. “We are as connected in political circle as any other business group.”

Now, isn’t that an answer, which raise a few more questions?

Read the full report here.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Captain America dons garb of US President
Life

Captain America dons garb of US President

Captain America has a new job with perks, a spacious office and a title that others spend millions of dollars to get: Mr. President.

The importance of VS Naipaul's 'Islamophobia'
Life

The importance of VS Naipaul's 'Islamophobia'

V S Naipaul's critics condemn him for nurturing a vehement antipathy towards Islam. But is that also means to reconstructing a cultural history with more clarity?

How Kapil Sibal sold his soul
Politics

How Kapil Sibal sold his soul

A Caravan cover story confirms what we already suspect: Sibal is an ambitious man who will discard scruple for success. What is interesting, however, is the notion that a young Sibal did indeed possess scruples that were available for sacrifice.