did mak mislead investors?, page-26

Cableguy,

The meaning should have been obvious:

IPL have done a rights issue to fund short term debt. MAK's short term debt is completely covered by its current cash.

When a company has problems meeting its debt, long term or short term, this puts severe pressure on the price. Despite this pressure, and in these markets, IPL seem to be maintaining a price above the rights issue price. The ability of companies to raise funds on the basis of fertiliser supply, tells me the market still has some stomach.

Hopefully this clarifies my point.