⚡ Flash Summary
Tri-Star Power Ltd. (TSPL) has reported to the Pakistan Stock Exchange (PSX) that it has observed price manipulation of its shares through illegal and unlawful means. Certain individuals and entities have allegedly attempted to manipulate the price, violating Pakistani laws and regulations, including the Companies Act, Securities Act, and regulations set forth by the Securities and Exchange Commission of Pakistan (SECP). The company highlights concerns that several companies, including Crescent Star Insurance Ltd., Weavers Pakistan (Pvt) Ltd., Bawany Air Products Ltd., and KM Enterprises (Pvt) Ltd., are orchestrating an arbitrary and illegal takeover by circumventing regulatory prerequisites. TSPL management believes a group is attempting to disrupt its operations through various illegal tactics.
📌 Key Takeaways
- 🚨 TSPL reports observing price manipulation of its shares.
- 🚫 Illegal and unlawful means are allegedly being used to manipulate the price.
- 🏛️ Violations of the Companies Act 2017, Securities Act 2015, and SECP regulations are claimed.
- 🎯 Companies including Crescent Star Insurance, Weavers Pakistan, Bawany Air Products, and KM Enterprises are suspected of orchestrating a takeover.
- 🤝 These companies allegedly issued disclosures under Section 110(1) of the Securities Act, 2015 upon allegedly acquiring shareholding in TSPL.
- 😠 TSPL believes the issuance is a malicious scheme for an arbitrary and illegal takeover.
- 🎭 The involved companies are accused of acting in concert with individuals who previously attempted hostile takeovers.
- 🚧 The group is allegedly circumventing the Securities Act 2015 and takeover regulations.
- 🌪️ TSPL suspects a group is disrupting its functioning through illicit activities.
- 📉 Tactics include cross trades and unwarranted disclosures to create chaos and artificially tamper with stock prices.
- 💔 The aim is to diminish stakeholder confidence in TSPL.
- 🔄 Shares acquired by initial acquirers are allegedly internally transferred through fictitious trades.
- ⚠️ Purported acquirers are believed to be involved in illegal activities.
- 📢 Tactics include pumping and dumping shares, acting in concert, and price manipulation through fraudulent means.
- 📉 Artificial selling and speculative trading designed to destabilize the company’s share price.
🎯 Investment Thesis
Given the serious allegations of price manipulation, hostile takeover attempts, and regulatory violations, a SELL recommendation is warranted. The company’s stock price is highly unstable and subject to artificial influences, making it an extremely risky investment. Price Target: To be reassessed after resolution of the alleged manipulation and clarification of the true value of TSPL.
Disclaimer: AI-generated analysis. Not financial advice.