In September 2011 I had posted a blog warning to stay away from ‘this item girl’ P G Electroplast on it’s listing debut that saw it’s Share Price reach past Rs 500 trapping all those who grabbed it at such high manipulated levels !
Tuesday, September 27th, 2011
The Promoters diverted IPO Funds through issuing Inter Corporate Deposits (ICDs) to two entities and also repaying ICDs taken from other entities just prior and during the time IPO was open and which was not disclosed in the Prospectus….. so that these entities could indulge in rigging the Share Price on listing !….some of these IPO Funds were used to privately purchase land too !
Today the Company quoted at Rs 150 levels
SEBI has passed an order yesterday against both the Company and it’s promoters,Promod Gupta,Anurag Gupta,Vishal Gupta and Vikas Gupta prohibiting them for a period of Ten years from raising capital in the Securities Markets in any manner whatsoever and also from buying,selling or dealing in Securities Markets in any manner whatsoever.They must also take urgent and effective measures to recover monies on ICDs given and on contracts for purchase of land that have not yet fructified and report the progress to SEBI by May 10 2014 on the basis of which further directions will be issued
Simple Questions I ask here ….Is only a Ban enough !?…should they not be held criminally liable too and what about the Loss suffered by IPO Allottees and Investors who bought on Listing at rigged higher prices ! ?
It’s Companies like PG Electroplast who come out with IPOs only to execute sinister gameplans that contribute in big measure to the crisis of credibility and confidence in our bourses and drive away retail investors from Equity….and it’s taken SEBI two and a half years to give a final order…though to it’s credit it did issue an ex parte interim order in December 2011 itself
…a last word….the BSE SME IPO and Trading Platform is just another bubble waiting to explode…the concept is good on paper but the reality is quite horrendous if one cares to examine the quality of companies that explored this listing route….their prospectus reveals this