Shareholders of DB Realty, whose promoters Shahid Balwa and Vinod Goenka were arrested earlier this year for their alleged involvement in the 2G scam, quizzed the company management on the falling share price of the company, non payment of dividends, delay in project executions and deliveries at its 2nd annual general meeting held in Mumbai, on Wednesday, even as the company assured them of timely execution of projects.
According to shareholders, the management has assured investors that the cash position of the company is a comfortable level, at the AGM, which the media was not allowed to cover.
Subramanian Krishnamurthy, holding 56 shares of DB Realty, said, ?KM Goenka, the present chairman, is a very senior person in real estate industry and has said the company will do well. I feel satisfied.?
However, when asked whether he would like to continue holding shares, he said, ?I do not have a choice. What can I do at this price?? DB Realty?s shares were at a 52-week-low on September 2, and on Wednesday, closed at R59.85 on the BSE, 1.16% lower than the previous day?s closing.
Another representative from an institutional investor said, ?The company management is showing confidence about the future of the company. But we don?t know if it is the full truth.? He did not wish to be quoted as he was representing the company and did not come in his individual capacity as a shareholder. ?We are concerned about the falling share price and non payment of the dividends,? he said.
Among other issues shared with the shareholders, the management also said that it may consider giving ESOPs or employee stock options to retain staff. Though the management did not confirm this, shareholders said, ?They are thinking about it,? said Kirti Shah, a shareholder. ?Shareholders were asking since the confidence is low, how the management will retain its employees, so chairman said they could look at ESOPs.?
According to shareholders, the management assured that its projects are delayed primarily due to the ongoing glitches in the approval process and that their execution otherwise is on time. Shareholders were unwilling to share details on the management?s view on specific project cancellations.