I have watched Glodyne fall from over 1000 Rupees per share before 2008 to 11 Rupees as on date.

I am sure everyone is wondering why such a big fall? Below are few major reasons that i can think of
  • 90% of Promoter Stake is Pledged. It was the same case with Satyam. This i believe is the single most reason for such a fall. Always, stay away from a company whose promoter stake is pledged.
  • For an IT company, it is totally weird that they have over 300 Crores of Debt and its debt levels have been on the rise consistently in the last 5 years. I do not see any other IT software company having debt
  • The management has done pretty much nothing to address such a huge share price fall. Something surely is fishy. Bad Management

Just stay away from such companies. Never try to get into such stocks. Believe me, there are much better investor friendly stocks to invest your hard earned money in.

Watch the Below video to understand how to check whether promoter stake is pledged.