IPO Details
|
The company was in the business of sponge iron of which India is the largest producer in the world with a total production of 20.96 million tons as of 2009. The company expanded its market into Madhya Pradesh, Maharashtra, Chhattisgarh, and Uttaranchal in sponge iron and steel billets & ingots. The company could become market leader in the long term. The promoters also had good experience of the business and industry...
Creating a False Demands
The company's IPO did not generate enthusiasm at the beginning but gained subscriptions by the closing date. On the first day - April 29, 2011 - the total subscription recorded was 0.95 times including 0.10 time of the RII category. On the second day - May 02, 2011 - the IPO was subscribed by.1.26 times and the next day, May 3, 2011, it was subscribed by 4.16 times...
|
|
Vaswani's Management Moves to Securities Appellate Tribunal
On May 18, 2011, Sebi issued notices to exchanges to withhold the listing of Vaswani's IPO till further instructions. Sebi received several complaints from investors regarding irregularities in the subscriptions and it decided to inquire into the matter. On May 26, 2011, Sebi issued a press release against the Vaswani IPO and gave the assurance that the investigation report would be submitted by June 25, 2011...
Exhibits
Exhibit I: Installed capacity and Utilization of Capacity
Exhibit II: Vaswani Industries Limited's Balance Sheet of from 2006 to 2010
Exhibit III: Vaswani Industries Limited's Profit and Loss from 2006 to 2010
Exhibit IV: Vaswani's IPO Issue Details
Exhibit V: Each categories' Proportion for Subscriptions,
Bid Received and Numbers of times Subscribed
Exhibit VI: Sebi's Claims the Way Irregularities Involved During IPO Issue
Exhibit VII: Vaswani's Cash Flow Statements from 2006 to 2010
|
|
