British American Technologies Ltd., (BAT) acquired a 24 per cent stake or 24.4 million shares at Rs. 1.50 per share in PC Pharma early last week and Mr. Rishan in a letter, through his lawyers to the SEC, has said that despite him having a buyer at a better price, his broking firm, LOLC Stockbrokers sold this stake at a lower amount to BAT. The original stake in this company of PCH was 51.6 per cent whilst Mr. Rishan held 35 per cent stake as at 31 March 2013.
PC Pharma shares were lodged at LOLC broking unit and when the share price started to fall, LOLC was faced with margin calls (which are demands by a broker that an investor deposit further cash or securities to cover possible losses). The firm was under pressure to sell, according to sources close to LOLC. Mr. Rishan is requesting the SEC to reverse this transaction.
PCH itself has seen a large number of transactions by directors, in recent times with some brokers suggesting that this may be selling to cover other debts.