Do you know that Harshad Mehta still holds this stock? Read to find out the whole story!

The infamous bear cartel known as the 3R’s, who were associates of the enigmatic "Black Cobra," and the formidable Harshad Mehta, the undisputed big bull of that era

When it comes to stock market scandals, the name "Harshad Mehta" inevitably springs to mind. Harshad Mehta, often dubbed the "Big Bull" of the stock market, had a knack for inflating share prices through cunning manipulation tactics. His shrewd maneuvers left a lasting mark on the financial landscape of India.

In 2020, the intriguing life story of Harshad Mehta found its way to the small screen, captivating audiences through the web series 'Scam 1992' on the popular OTT platform SONY LIV. This show reignited public interest in the notorious scam, shedding light on the intricate web of deceit that Mehta wove during his heyday.

But let's rewind the clock three decades. Back then, Apollo Tyres found itself in the midst of an epic battle between two forces—the infamous bear cartel known as the 3R’s, who were associates of the enigmatic "Black Cobra," and the formidable Harshad Mehta, the undisputed big bull of that era.

Mehta, true to form, was systematically driving up the share price of Apollo Tyres, while the 3R’s, with conviction bordering on audacity, were shorting the stock, firmly believing it to be overvalued. This clash of titans became a defining chapter in the history of Indian finance.

Apollo Tyres has weathered its fair share of ups and downs, evolving into the second-largest tire company in India. In a bold move, the company once attempted a USD 2.5 billion deal with Cooper Tire a decade ago, aiming to outshine even MRF. However, market sentiment forced them to abandon the deal. Nevertheless, a prior agreement with Vredestein tires provided a much-needed boost to their fortunes.

Harshad Mehta's notoriety stemmed from engineering a meteoric rise in the Bombay Stock Exchange, an event that became synonymous with the 'securities scam.' After his fraudulent activities were exposed in the mid-1990s, a series of legal proceedings ensued, leading to the sale of several of Mehta's assets. Among these assets were a whopping 5,488,850 shares in Apollo Tyres, equivalent to a significant 15.1 per cent of the company's equity. In April 2003, Apollo Tyres, along with its managing family, the Kanwars, acquired these shares.

However, the legal saga continued. In 2011, the Supreme Court in New Delhi ordered Apollo Tyres to return a portion of these acquired shares to the Mehta family custodian. Ashwin Mehta, Harshad Mehta's brother, spearheaded the appeal, challenging the Mumbai Special Court's 2001 decision that allowed the bulk holding shares to be sold back to Apollo Tyres.

At the time of purchase in 2003, Apollo Tyres had paid a mere Rs 90 per share, a sum believed to be well below both the book price and the prevailing market rate. The Supreme Court found fault with the Special Court's handling of the case, citing a lack of effort to secure the highest possible share price. However, it also deemed the complete annulment of the sale of 5,488,850 shares impractical.

As a result, the Supreme Court ruled that the sale should be limited to 4.95 per cent of Apollo Tyres' equity, remanding the case back to the Special Court. This Special Court is now tasked with taking the necessary steps to recover the 4.95 per cent shareholding from Apollo or its management and facilitating a fresh sale.

As for the latest information available, Ashwin Shantilal Mehta, the brother of the late Harshad Mehta, maintains a 2.13 per cent stake in a custodian account. It's a fascinating chapter in the annals of Indian finance, and one can't help but wonder about the intricacies of this enduring financial saga. Were you aware of this intriguing holding of Harshad Mehta?

Disclaimer: The article is for informational purposes only and not investment advice