After trying to please their shareholders with food and other product vouchers at the time of Annual General Metings, some listed companies are finding Diwali another occasion to charm their investors and also boost their sales by offering discounts.
Some of the listed companies, including computing device maker HCL Infosystems, are offering up to 20 per cent Diwali discounts on their products like laptop and tablet computers and also some free gifts - exclusively for their shareholders.
HCL Info has written to its shareholders that it is offering these special offers to celebrate Diwali festivals as a mark of its “gratitude” for their support.
“We are sure that the products and special offers will not only enrich your festivities but will also strengthen our relationship further,” HCL Infosystems said in its communication to shareholders.
Market watchers said that such discounts are not very common among the listed companies, but also not very unusual for a company into the business of consumer-focused products.
For quite some tine, companies have been circulating discount coupons for their products along with their annual reports sent to the shareholders. Besides, some firms also give food and other coupons to their shareholders at the AGM venues.
Discount offers for Diwali could services many purposes - pleasing the shareholders, boosting sales during festival season and developing a loyal customer base, said experts.
At the same time, some experts said that offering discount at times likes Diwali might not be among the best of ethical business and stock market practices.
Keywords: Companies attract shareholders with food, other product vouchers, Annual General Metings, some companies are finding Diwali, charm their investors, boost their sales, offering discounts.
Comments:
This is not a good practice to be encouraged. This is unethical and this will result in irregulaties and mal practcices.The companies are doing this at the cost of their profit and to that extend Income Tax will come down. Further the expenditure will be hiked to promote sales and this may be inflated also. To keep the shareholders happy, the Companies should strengthen its Corporate governance, maintain the accounts without any scope for fudging the figures, conduct the operations as per the regulatory requirements in force and respecting the laws of the country.SEBI should have an assessment of the companies indulging in such undesirable practices and should be rated down. This approach is to cover up the inadequacies of the management and should be completely discouraged.Earlier the authorities stop this , the better for the Company, the economy,the shareholders, and the Regulators.
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