According to Jagan, Sandur Power’s annual turnover is around Rs 35 crore, with an unbelievable cash profit of around Rs 25 crore. He says that profits are ploughed back into his myriad companies. However, many of Jagan’s transactions smack of patronage for profit. Between April 1, 2007 and March 31, 2008, he sold 21,42,860 Sandur shares at Rs 140 each to Nimmagadda Prasad, founder-promoter of pharmaceutical company Matrix Laboratories and earned a profit of nearly Rs 30 crore. Prasad also bought 19,44,441 Jagati Publications shares in the name of Gilchrist Investments Pvt. Ltd, Alpha Villas Pvt. Ltd and Alpha Avenues Pvt. Ltd at Rs 350 a share.
round the same time, VANPIC Ports Pvt. Ltd, a company in which Prasad and the Ras al-Khaimah Government are partners, was allotted the rights to develop Chirala, Vodarevu and Nizampatnam port projects in Andhra Pradesh on a build-operate-transfer basis. Jagan has also sold around 82,00,000 Sandur shares at Rs 140 a share to ZM Infotech, Chennai, Nelcast Finance Ltd, Excel Prosoft Ltd, Sai Surya Warehousing Ltd and Sigma Oxygen Ltd, raising around Rs 115 crore. “Selling his company’s stake to mobilise funds for reinvesting in new projects is how any businessman would do his business,” says Jagan.
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