Alchemist Limited-History going to repeat?

From Toubro infotech to Alchemist

This is a company which changed its name from Toubro infotech to Alchemist limited and even the business opeartion.Presently its striving too hard to make a brand image for itself.Infact its trying so hard that sometimes back it went on to sponsor the federation cup.Now here is something which is set to raise your eybrows.

I recolect 3-4 years back ths company was 'selling' its debentures for which a network of around 7000 agents had been established.These agents targeted mainly villagers to whom it was promised that their money would become ten times within 13 years.The company also issued post dated cheques to its investors.Apart from the attractive offer to its investors a high rate of commission,gifts and tour packages were also promised to the agents who met the specified targets.The result was after collecting a huge sum of money It duped the most and several cases were filled against the company.The police never got hold of its MD,Mr K.P Singh.Despite several visits, no senior official was available for any commnets.The company further mentioned that it got a "A" rating from some credit rating agency which even the SEBI objected.So as expected the company was going to become a sick company due to failure in software business, cut flower business and because its "account was sealed".

Now its 2008 and alchemist is moving places.From 2005-06 onwards it re-aligned its presence across two businesses - agri-business and pharmaceuticals.Every segment of the company has started doing wonders.Infact it would be prudent to note that the company has rewarded all the stakeholders with bonuses,hefty dividends etc.To command better valuation it even reversed splitted its shares from FV 1 to FV 10.

From a dubious toubro infotech which was expected to be a closed company its now the flamboyant 500crs company,Alchemist limited.The last director report mentioned it still has got a fixed deposit of over 25crs.Everyone is giving mind-boggling targets for the scrip as its doing all the rite things,moving into sun rising businesses,delivering great numbers.

But as we say"Time will discover everything to posterity its a babbler and speaks even when no question is being put.I really pity the guys who have put their hard earned money on to it,atleast on the fixed deposit side.I mean just feel it, once you have been duped and again the same mistake has been done from your end,A companys image is just like a glass once broken it never comes back to its old state.

I have really got no idea how Alchemist managed to be the one that we are talking about.How can a company be allowed to do these?Maybe it rejuveneated,maybe it realised its mistake,maybe its now commited to create a hell lot of shareholders wealth,But what about the people to whom it laundered the money?Will they ever get there money back?will they ever be compensated?And all said and done is there any guarantee that history wont be repeated again?


Regards,
ARUN
i can be reached at-arunanalyst@rediffmail.com