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Friends, please stay away from Infibeam stock. Its promoters are manipulating its stock price.

1. Bennett Coleman bought a stake in Flipkart on Feb 17, 2017 for Rs 260 crore. It wanted to buy stake in Infibeam for a similar amount roughly Rs 250 crore to Rs 300 crore then why it bought for only Rs 60 crore? Bennett Coleman is an existing investor in Infibeam and will gain if the stock price of Infibeam goes up. Bennett Coleman received phone call from promoters of Infibeam during an ongoing Board meeting on Jan 25, 2017 and got access to confidential insider information about acquisition of CCAvenue and therefore it agreed to buy warrants for just Rs 60 crore. Phone records are proof of it. What were independent directors doing in that board meeting? Why didn’t they object to calling Bennett Coleman in on-going board meeting? The company did not close its trading window during its Board meeting in Jan and Feb, 2017 and gave free pass to all insiders to trade on insider information. It is a violation of insider trading and corporate governance norms.

2 Watch CNBC TV18 interview of Feb 23, 2017of Neeru Sharma (director in Infibeam). She did not answer the question why promoters didn’t invest such a small sum of Rs 60 crore themselves in company rather than taking it from Bennett Coleman? Bennett Coleman picking up a stake makes headlines. You will see more preferential allotment being done to Bennett Coleman or someone at a higher price (Rs 1500 or Rs 1700 per share or higher) in coming days for further pushing up the stock price. Infibeam needs to raise money by diluting its stake at a higher price or increase its share price to pay for the acquisition of CCAvenue in stocks.

3. From where will Infibeam get Rs 2,000 crore when it earns just about Rs 40 crore profit in current fiscal year? How much CCAvenue earns in revenues and profits every year no one knows. Infibeam does not want to share any information with its shareholders about CCAvenue. How can CCAvenue be worth Rs 2000 crore in Jan 2017 when Infibeam bought a stake in it a few months ago at a valuation of Rs 1500 crore? Why no auditor or investment banker or an expert opinion was taken to arrive at a fair valuation of CCAvenue? How can a valuation of CCAvnue be known to Infibeam beforehand without doing its due diligence and knowing the risks and liabilities involved? The acquisition was under cover for a longer period of time than it is made to appear.

4. Why do we always see research report on moneycontrol on Infibeam stock only from KRChoksey and no other research/brokerage house publishes it? Deven Choksey is a family friend of promoters. Phone records are proof of it. He is helping in manipulating stock price by always publishing research reports with higher and higher targets. Is he also having insider information, your guess is right.

5. Why no domestic institution, mutual fund, insurance company or FII is willing to buy a single share of Infibeam when its stock price has more than tripled in less than a year? Why only Bennett Coleman is buying?

SEBI is looking into all these issues actively and accessing phone records, a complaint has been filed with it. In April when one year lockin period from IPO gets over, promoters and other pre-IPO shareholders will start offload majority of their stakes in market at higher price. After SEBI passes its order, this stock will fall down to double digits from four digits.