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“In India, companies may fall sick, but promoters rarely do!”

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Had Warned you on the P G Electroplast Listing Manipulation in 2011!~SEBI now issues an Order

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 !

PG Electroplast IPO at Rs 210 sizzles on listing yesterday and hits upper circuit at Rs 493 today !….don’t get seduced by this Item Girl !

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


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