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Ashish Dhawan’s Personal Investment In Allsec Sinks

26 August, 2008

ChrysCapital’s Managing Director Ashish Dhawan has just raised his personal holding in Allsec Technologies to more than 5 percent, however the value of his holdings have come down by two-third. Probably he can set off these losses against the profits from other deals.

Ashish Dhawan bought a large chunk of shares between September and December 2007. As of December 31, 2007 his personal holding in Allsec was 7 lakh shares representing 4.59 percent of the company. Given the average price during the quarter he would have paid close to Rs 9.5 crore for acquiring this stake. He added more shares (apparently after the market crash in January) during the first quarter of 2008 to take it up to 4.92 percent.

Over the last two months he bought more shares to take the total holdings to 5.03 percent. While the estimated cost of his investments works out to be close to Rs 10 crore the worth of his holdings in Allsec today is down to just Rs 3.3 crore.

Interestingly, while his firm ChrysCap escaped investing in India when the market was approaching the peak, he himself ended up investing at the wrong time and has lost two thirds of his investments in Allsec. The recent share purchases appear to be more of an averaging out strategy.

Incidentally, Allsec happens to be part of the portfolio of First Carlyle Ventures. It had entered into a deal to pick a substantial stake (around 21 percent) in the firm in 2006 and later came up with an open offer which wasn’t too successful in garnering shares. As of June 2008, First Carlyle held 27.5 percent in Allsec.

However, nothing beats the value erosion for First Carlye, who invested at a price of Rs 260 per share as against the current market price of Rs 43 for Allsec, negative return of more than 80 percent!

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Krishna Mony . 6 years ago

So are investments made by most others… What’s the big deal?

Stock prices may go up an down, but it’s the investment philosophy that matters. Ashish Dhawan is a professional investor and he sure must have his reasons that he doesn’t need tell the whole world. Stories such as this serve no purpose except that they betray a cynical reporter that is attempting to rub it in.

Take my word, it won’t. Later when the tide turns which in all probability it will, the reporter will have a tough time covering her derriere.

Vivek . 6 years ago

Krishna, I think the intriguing part of the whole deal is that ChrysCap has been(more or less) staying away from dealstreet when the market was peaking but the head of the firm himself made the mistake of putting in his own money that too in a PIPE deal!!

Krishna Mony . 6 years ago

Vivek, AD the fund manager can follow a different investment philosophy different from that of ChrysCap. Agree?

But then for all we care, AD may have access to *privileged information* that ChrysCap may not necessarily swallow. So he may have gone ahead and invested. Why prejudge?

If he is proved right eventually, all those oracles that predicted doom will look like orifices. Why not save some good looks 😉

Gaurav Madan . 6 years ago

The title of the post should be “…come down to a third” rather than “…come down by a third”

Ashish Dhawan’s Personal Investment In Allsec Sinks

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