Jindal Vijayanagar

Many of the shareholders are not willing to go for this payment.

This partly paid stock is being traded in the market at Rs 0.40 per share, while the fully paid-up one is moving around Rs 5-5.50 per share in the secondary market.

Hence, the shareholders are not willing to shell out another Rs 5 for paying the call money. Besides, they expect to pick up the stock in the secondary market at a later stage when the scrip declines below Rs 5. A few shareholders are confident that the fully paid share price may drop below Rs 5.

The companys project, which was expected to start commercial production of its first plant, that is the hot strip mill, by September 1996 has just begun the trial runs. After the delay, the project witnessed many changes.

 

The project is also said to have faced some cost overruns. But one will come to know about this only after the accounts of capital expenditure are published in the annual report.

The company hopes to find buyers in the southern part of the country for the products, which are expected to roll out from the hot strip mill.

This seems to be a quite difficult task because there are hardly any end-users for these products in the vicinity. Analysts even suspect some problems of mismanagement in the company. With all these uncertainties, there is a possibility of the scrip price sliding further. If this happens, the shareholders not paying the call money may not be asked, in the near future, to pay the the same from the shareholders who are holding the partly-paid share of Rs 2.