Click to play videoNew Delhi: Samajwadi Party General Secretary Amar Singh has been demanding a tax on windfall profits. And the implementation – if it comes through – will start with Amar Singh himself.
For, ever since the SP emerged favourites in the game of walking sticks, not only has it breathed life into a paralysed Government, it has also pumped adrenalin into a little-known firm called Energy Development Company.
Little known, that is to the public at large, but not to a group of investors who have realised the importance of Amar Singh being the chairman of the company.
The Samajwadi Party General Secretary, along with his wife, owns a two per cent stake directly. A company named after his wife owns another five-and-a-half per cent.
His good friend actor Amitabh Bachchan has a four per cent stake and a seat on the board. The majority owner is Sarvottam Caps whose ownership could not be ascertained.
The stock listed on both the NSE and the BSE has shot up 40 per cent in the last four trading sessions, last closing at Rs 133. The stock was locked at upper circuit in the last three trading sessions.
The trading volume as jumped as well. While seven lakh shares changed hands in the BSE on Wednesday, one lakh shares were traded on the NSE. This is against an average volume over the previous two weeks of just 8,000 shares.
The company's declared purpose is to engage in power generation and execute infrastructure contracts. It states it has plans to enter oil and gas exploration.
In the year ended March, it made an after-tax profit of Rs 16 crore - equal to a quarter of the revenue.
The fundamentals of the company have not changed but political equations have. Dalal Street clearly sees a connection.
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