Adani Wilmar Limited IPO Message Board (Page 2)

Adani knows it very well to shift required shareholding in his close hands.

Greetings @RonnieLewis! Managing this is one of the easiest things to do and there are several ways around it. In fact, companies can end up garnering a lot of public appreciation and admiration while doing so.

To give an example, look at how Wipro managed this. It created a foundation by the name of its founder which is headed by guess who, its founder. It then transferred the excess promoter equity to that foundation, termed it the biggest charity donation ever by an individual, and garnered a lot of praise from one and all. The common public wasn't interested enough to read and understand what was written between the lines and went purely for the optics while in reality, it was as simple as taking money out from one pocket of the trouser and putting it in the other pocket of the same trouser. The money is still yours as are those pockets and the trouser, all the shebang with the added benefit of the trouser now being branded 'The Biggest Charity Ever'.

Best Wishes!

@venturestack partners
Foundation is tax free entity (under section 80G) for public welfare. Income Tax authorities will ensure that money does not go back to other pocket.
If foundation was private trust then your point would have been valid but then SEBI would have objected saying that voting rights for these Wipro shares are promoter related. As per Trust Act 1882 the charitable commissioner has right to vote on the share which makes it public
Tata Sons is private trust thus their shareholdings are treated as promoter holdings

Greetings @arunArun! You are right on a broader level but you missed a few critical points in that there are differences between a privately operating/ functioning foundation and a trust. Both have been used extensively as a vehicle for asset protection, both in India and outside.

In the example of Wipro quoted above, we must understand that holding well over 70% of the voting rights literally enables the holder-promoter to push through the agenda on the table. While there might be members on the board opposing a certain proposal, the holder-promoter would still be able to have his way through.

As for the foundation itself, it holds no legal obligation to disburse the endowment to a specific beneficiary but does need to meet the 5% annual outgo though. It may decide to simply keep the rest of the endowment parked till it feels necessary. In case of Azim Premji Foundation, it has donated to the cause of education, largely through Azim Premji University. Since a foundation has a 'not-for-profit' structure by its very nature, it cannot operate or participate in 'for-profit' operations which means that it cannot hold voting rights or a seat on the board. This again leaves the majority of power concentrated in the holder-promoter's hands.

So yes, there are ways to do charity and then there are ways to do charity work smartly and Mr. Premji is definitely a smart man. Cheers!

@venturestack partners While yuou are right on certain points, i am not sure what you wanna say about MR Premji, isn't smartly doing charity through foundation is best way?? do you wanna say he is just fooling people?

Greetings @Anandi! All we are saying is that charity is no business and Azim Premji is a businessman at the end of the day. What he did has been done by a lot many others; business donating to their own foundations who in turn donate to educational institutions chaired by the same business owners. Mr. Premji is no sinner or saint and was merely trying to retain the capital he has built through years of work and perseverance using the tools available to him. Think of it as an individual making various investments only to save up on paying taxes to the government. Would we make those investments if there were no taxes?

Ambanis, Bajajs, Jindals, Premjis, Tatas, Birlas, you name it and they all have their own educational institutions getting regular grants from their own businesses. While educational institutions in India are supposed to be non-profit entities, there are several loopholes present in that policy as well. These are tools deliberately left as an option by the government since they bring in the much needed investment and participation of private entities into sectors like education and public health.

Hope we were able to provide a fair explanation to your questions.
Best Wishes & Happy Investing!

Why did you invest in below ipos? All forum members have alerted against investing in these ipos ...

Cartrade - 647
Paytm - 920
Krsnaa - 642
Nuvoco- 400
Ags transact- 146

Below IPOs gave enough time to exit in profit..
Nykaa cmp 1644
Policy bazar cmp 800
Zomato cmp 88

Did not you invest in AWL?

I am great admirer of Aniket sir but many of his long term recommendation are also bleeding ex: Heranba, Sansera , IRFC etc
Market is mercilessly beating overvalued stocks including good names like Jubilant, Dr lal etc
Only fairly valued largecap stocks are only sustaining.
Those companies whose fundamental is good and have good growth potential will bounce back so relax and enjoy RED.

I also want Admin to apologise to Aniket sir and bring him back🙏
He is true genius and person will impeccable experience.

Brought 25 shares @400 today, hoping good results

abhi to result aane baki hai, It will blast up

Game is not yet over I think will have to wait till monday for result.

May be but chances 20/100 no one can predict what happen tomorrow market is always supreme

Game over soon as they cant sell before 30 days from allotment ....then price will be settled near 275/280 likely

Appreciate your views but I think AWL will settle near to 470 to 500 in between after 30 days and will continue to go towards that 550 mark.....

Looking like game is over....LC any time

@Cautious...be cautious looking like game is not over .....UC any time

Missed by 4 rs to LC almost...clever operators not fully exit dumping in parts

Missed by 5 rs to UC almost.....now trading flat

Hoping This Upper Circuit To Continue Today.

Kal Bhi lagega UC

Can attempt tomorrow? Will that be risky? I

Kya lagta board meeting main results good honge ya nahi?
Like company profit declared karegi ya nhi?

One can expect excellent numbers, as all edible oil companies have posted decent numbers