You think SEMB is that bad? Did you notice some improvement over the last few quarters?
Also Dr Senthil must have done some study to invest that much. Having a reputed investor in the company is something to consider. It better than not havign one.
Anyway SEMB is the only share below Rs 1 right now. It is too liquid after the warrant and right issues.
I am not saying SEMB is "that bad ". I am looking at the broader picture.
Look at the industry and the industry segment, companies like SEMB are in.
# There are 30 odd listed companies in this financial services ( leasing, hire purchase, private loans ,dealings in property ...) . all are at cut throat competition to attract deposits as well as to grant loans/ leases.
# Since Banks, established finance companies like CFIN ,LFIN are also competing in this market segment, these companies have to offer high rates to attract deposits and they are left over with a client base at the high risk end.
# most of the companies are not having a track record or the backing of a financial heavyweight ( except few like CFIN, LFIN, VFIN , PLC ... ) and are subject to severe strains , if there is rise in interest rates .
#most pressing issue is that the company is subject t collapse overnight, if there is a "run" and subsequent collapse of any one company in the industry.
An investor who is looking for stabity, growth, and returns on a long term basis, will not enter into this type of industry, though some companies within the industry might show good results on quarterly/ annual basis, and indicate consistent improvements.
With regard to Dr Senthil 's involvement in SEMB , he must be there with a specific strategy. Rather than investing in growth prospects, they are essentially dealing in securities, and I doubt whether a retail investor can align his strategy with the strategy of that type of investor.