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SEBI bans Austral Coke from raising Capital…was it sleeping when it allowed it to raise Capital through an IPO last year !?

It can’t be just a coincidence that this is my Blog Post No 420 !

Austral Coke came out with it’s controversial IPO in August 2008 in the price band Rs 164-Rs 196 for a FV Rs 10 share…The price was fixed at Rs 196 and it got listed on BSE on September 4,2008 rising to Rs 309,before closing at Rs 225…On October 28,2008 it dived below Rs 60 and since then has recovered to touch a high of Rs 570 last month before reacting ex split and post SEBI ban to Rs 48 today

The Company recently sub-divided the share into FV Rs 1 and it closed at Rs 48 today after SEBI banned it from raising capital…following disclosure by the Income Tax Authorities of Fradulent transactions of over Rs 1000 crs !

SEBI should have investigated it more last year before permitting the Company to raise Capital through an IPO.I had blogged this controversial IPO on August 8,2008 commenting that SEBI should have then itself verified claims of the Company on it’s capacities that were contested by Gujarat NRE Coke

Austral Coke went on to raise Capital in the IPO and it has now been also accused of diverting the proceeds too.

SEBI needs to get real serious about it’s prime objective of Investor Protection without fear or favour and probe Insider Trading more stringently

Expect the share price to fall further from Rs 48…if it does not then you know it’s being supported artificially by the company

If you hold the share,I would strongly advice you to sell as Promoters’ credibility continues to be suspect..and regulatory and tax authorities will continue to have Austral Coke under a heavy scanner…….and if you are an IPO allottee you’re already sitting on over 100% long term  gains….Take them


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