Forbes has an excellent article on what went wrong at OnMobile. It was a certain Mr. Arvind Rao, it seems.
On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares. Rao already owned over 10 percent of the company’s shares.
At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them. [Deepak here: This money was borrowed]
OnMobile’s shares continued to fall from those levels, while Rao’s interest payments ballooned.
Consumed by the downward spiral of his baby and his worsening personal debt situation, his characteristic energy and enthusiasm waned, visible to most of his senior colleagues.
In an attempt to […]