Is the Pot Calling the Kettle Black !?
Giridharilal Jagatramka of Gujarat NRE Coke has accused Son In Law, Ratan Lal Tamakhuwala of Gremach and Austral (Currenly IPO is Open) of misstatements in the Prospectus of Austral and misusing the Name of Gujarat NRE to promote the IPO of Austral….Main accusations are that the Capacity of Austral is falsely stated at 3.75 lakh tpa of Low Ash Metallurgical Coke (LAMC).Austral operates only two chimneys and has a capacity of just 70000 tpa
Furthermore the Prospectus claims that the promoters of Austral were the original Promoters of Gujarat NRE Coke without disclosing that in 1997 they were expelled from the Company for fradulent practises
SEBI should have written to Gujarat NRE Coke for verification of this before clearing the Austral Prospectus
You can read about all of this in today’s edition of Business Standard at
Let me jog your memory a little…….Jagatramkas also owned FCGL Industries Ltd,a BSE Listed Investment and Finance Company…In May 2006 they merged this company with their flagship Gujarat NRE Coke with retrospective effect from October 2004…..It was a well known fact on the Street that FCGL played around plenty in trading shares of Gujarat NRE Coke on the BSE…Infact it’s 2005/6 quarterlies show huge sales of Gujarat NRE Coke and huge profits on account of this……this raises strong suspicion of continuous ongoing and blatant insider trading in both the counters of FCGL and Gujarat NRE Coke
So is the Pot calling the kettle Black ?…where does it leave Investors ? should one be invested in Gremach,Austral and Gujarat NRE Coke where family fueds are destroying the companies progress…notwithstanding that LAMC is in great demand ?
SEBI’s responsibilty for Investor Protection clearly is onerous when it has to conduct due diligence when vetting the Prospectus