SEBI barred four promoters of the PG Electroplast for diverting funds, manipulative activities and trading in its own shares during IPO in 2011
Market regulator the Securities and Exchange Board of India (SEBI) has barred PG Electroplast and its four promoters from markets for 10 years for manipulation of funds raised from the company’s initial public offering (IPO).
In its probe, SEBI found PG Electroplast and its four promoters, Promod Gupta, Anurag Gupta, Vishal Gupta and Vikas Gupta allegedly diverting funds and indulging in manipulative activities during its IPO in 2011.
SEBI order also reveals that PG Electroplast’s share prices have been fluctuated by diverting funds and indulging in manipulative activities during days of IPO in 2011. It came up with an IPO of 57.45 lakh shares at Rs210 per share, which opened on 7 September 2011 and closed on 12 September 2011.
According to SEBI, PG Electroplast suppressed material facts in its IPO prospectus as well as siphoning off and diverting the proceeds for the purpose of purchasing its own shares. It has failed to disclose information in the prospectus regarding funds raised through Inter corporate Deposits (ICDs). It had also diverted the IPO proceeds to entities who had purchased its shares, among others. SEBI then directed the company promoters to take urgent and effective measures to recover all the money on account of investments in ICDs, contracts for purchase of land which have not fructified till now and report it to SEBI till 10 May 2014.
However SEBI said that, the period of ban already undergone by the company and its promoters pursuant to the interim order on 28 December 2011, wherein the entities were restricted from the capital markets shall be taken into account for the purpose of computing the period of prohibition imposed in this order.
On Tuesday, PG Electroplast closed 10.16% up at Rs172.10 on BSE, while the 30-share Sensex closed marginally up at 21,832.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )