Hello..
Thanks a lot for the response to my earlier post. The large number of emails I got tells me that investor awareness is not dead yet! My friend Ayush tweeted the post and brought it to the attention of Mr.Anand Mahindra. (Thanks dude, I didnt need to write to the Mahindra Group management because of you.)
Now, I sincerely believe in being objective and disclosing both sides of the coin, hence this post...
Today morning, I got a call from Mr.Satoor, the CEO of Mahindra Composites, expressing regret for any misunderstanding that may have occurred at the AGM. He reaffirmed the Company's and the Group's commitment towards shareholders, regardless of the number of shares held. He also invited me to discuss any unanswered questions I had over a cup of tea and said that the management is always willing to answer all shareholder queries promptly. Free tea is always good, so, thank you for the invitation Sir! :-)
I personally thought that it won't be right to write just about my part of the story or to mention only negative aspects. Its fair to go on record and also mention about what the management did about the AGM fiasco and the prompt and professional way in which the CEO handled the matter..
Cheers and happy investing!!
13 comments:
Nice! Good hear about the change of heart from management ;)
Neeraj,
Your sincerity matches that of Anand Mahindra and his senior managers. Hope investors and mgmts learn from this episode about their rights and responsibilities.
Mani
Hi Neeraj,
CEO was also present in AGM then why did he not intervene there and then? Clearly it was the pressure from top which caused him to make you that call later.
Besties.
That was quick!
So alls well that ends well.
Fair of you to present both sides of the coin.
Thanks
But this action doesn't make right the behavior of the CFO. They seem to have reacted only because someone took the pains to highligh this & bring it to the attention of the group chairman. Shouldn't the behaviour of the company & it's CFO been proper in the first place? This company still doesn't pass the "smell" test.
Excellent !
This explains not only the power of internet but also the fact that nowadays investors can make their voices heard through appropriate platforms.
More power to the internet.
Though the management was quick in covering the goof up, this entire episode obviously left a bad impression of the 'Mahindra Group' on the AGM attendees and your blog followers.
Regards,
Rahul
Though i am tracking Mahindra Composites as a stock with great potential, after reading the original post & this follow-up, I can say that I am NOT convinced that the Mahindra values have percolated down to even the senior employees. As such, i will give this company a miss.
@ Raja,
Yes, it was nice to finally see some professionalism from at least someone in the mgmt!
@ Mani,
Thnx man, but i think i am still very small to compare with huge and successful ppl like these..just doing my bit as a 'small' shareholder!
@ anonymous,
I do not know whether it was pressure from the top mgmt or an email i had sent to the CEO which made him call. Anyway, i think the reasons are not important, the result is important!
@ Shaz,
Thnx!
@ anonymous and Zeenut,
Yes, i agree with u. dsnt pass the smell test..
@ Rahul,
More power to the internet indeed! and also to proactive readers such as urslf!
cheers!
Neeraj
Dear Neeraj,
They responded only to save their reputation n image.
It takes 20 years to build a reputation and one AGM to ruin it! He did not think about it and so behaved like that with the shareholders.
Once in one agm i filled up my 1 share attendance form. I was rudely told that because of shareholders like me, the co was incurring unnecessary high cost of annual report printing. I immediately took out my 8000 shares (worth lakhs)folio reference and then that fellow had to shut up!
Keep up the good work.
Janak Merchant
Hi neeraj
I think you saw a explicit and crude version of how a lot of management think about minority shareholders - the typical british raj mentality.
I can bet the MNC management of most companies are in the same frame of mind and think on the same terms - they are just not stupid to behave as crudely.
but this was a great input - i rate such experiences much more than any numbers ..even if these guys print money and have 500% growth , i will not touch such a company
life is too short to take aggravations from such people and companies when there are other companies to look at
btw - you now have the power to move managements :)
rgds
rohit
Hi Neeraj,
May be it was a one off incident. Please see if you can meet the CEO, or better still send him your questionnaire by email. No point in wasting time over tea :)
We cannot avoid all companies that treat minority shareholders rudely. Remember we are trying to be their co-owners, not customers. Maybe we can add a higher margin of safety while valuing such stocks. I would never ask you to waste time on a company with ethical issues. Or one that treats its shareholders with courtesy, but has so many transactions that go against their best interests. This one looks like its too busy making money!
Thanks for the good work.
Hi JM,
Thnx for sharing ur experience. Some managements are immature indeed!
Hi Rohit,
yes, i agree with u..such factors should play quite a large role in decision making. And i think any shareholder (not just me) has the power to move a management, provided that HE WANTS TO and is INTERESTED TO.. :-)
Hi Shankar,
Thnx for the suggestions..but, i have already done what u have mentioned. I am a professional analyst and i am not at all interested in going to the company to massage my ego and rub it in to them, when i already had a detailed talk with the CEO, who seems to be quite a gentleman.
Cheers!
Neeraj
Hi Neeraj
Good that you have shared though i was not surprised after reading this as have already experienced couple of time & most notably was IST Ltd where i had almost a similar experience but yes with Mahindra Group , it says many more things.
Amit Luthra
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