Do not get suckered by a SMS to buy Sawaca Business at Rs 72!

Dont get suckered by “Buy”  Sawaca Business SMS floating around past few days.It claims a Target of Rs 120 in days from current Rs 72 based on this Company receiving an order of Rs 18000 crs ! yes 18000 crs!, from UAE ! and asking the receiver of the SMS to check a link given that leads to BSE website Notification by the Company and reproduced verbatim as below

17 Dec 2015
Board to consider Bonus Issue Corp. Action 18:12
Sawaca Business Machines Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on December 28, 2015, inter alia, to transact the following business:1. To consider for increase the Authorized Share Capital of the Company.2. To consider for issue of Bonus Equity Shares to the existing shareholders of the Company.

3. To consider for the listing of shares of the Company at the National Stock Exchange Limited (NSE Ltd.)

However another Notification followed as below two days ago on the day the above meeting was to be held announcing that the meeting was postponed

28 Dec 2015
Board Meeting Postponed Board Meeting 13:15
Sawaca Business Machines Ltd has informed BSE that meeting of the Board of Directors schedule to be held on December 28, 2015 at 11.00 a.m., is postponed. The Chairman has decided to postponed board meeting to be held on December 28, 2015 as it is not possible to have fruitful discussion on meeting’s agenda’s matters due to non-availability of majority directors.

 Latest Notification states that one Sipten Dey,not part of Promoters, has accumulated 542724 shares or 5.22% of Equity between April 2015 and December 21,2015

There are regular Bulk Deals happening over past few days and yesterday’s volume was 3.54 lakh shares of which only 1/4th were marked for Delivery  

Trade Date 29 Dec 2015
Quantity Traded 3,54,250
Deliverable Quantity
(Gross across client level)
% of Deliverable Quantity to Traded Quantity 26.85


Price on December 17,2015 was @ Rs 63 and has since climbed to Rs 72

As on September 30,2015 this AhmedaBAD Company has a Networth of just Rs 11.28 crs ,most of it is Equity  at Rs 10.40 crs of FV Rs 10 shares  .Some Sales of Rs 2 crs are shown with a Loss of Rs 2 lakhs !

The MD is one Shetal Satishkumar Shah and worryingly BSE website also shows another Company Sawaca Communication which was suspended way back in February 12,2003 for penal reasons and had a last quote of just 30 paise on a FV Rs 10 share.I am assuming this company too was part of  the  Sawaca’s Shah Family as it bears the same Name ‘Sawaca,is from Ahmedabd and had one Shah as Director   

What is BSE doing !?

They must immediately launch an investigation and file a complaint with the Cyber Crime Police Dept to find out who is spreading the SMS and also insist on a legit clarification from the Company on why they cancelled the Board Meeting on December 28,2015 on the grounds of non availability of Directors and how in the hell could they consider Bonus with Reserves of just Rs 88 lakhs and Equity of Rs 10.40 crs !…and how with just Market Cap of Rs 75 crs were they planning to list on NSE too !

It is my strong suspicion that there exits a notorious nexus between those who are spreading the Buy SMS & those creating the Volumes on BSE

BSE & SEBI do something concrete and quick  & not just general alerts to be beware of SMS Recos !

Only specific action will deter such illegal and fradulent practices ~ This alone will be a  Real Investor Awareness & Protection Measure

Late Afternoon Update

BSE apparently had asked the Company for Clarification on the Rs 18000 crs order that was stated on a stock portal and the Company has replied that this is incorrect and they have no relation with those that posted such false news !    read more

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