July 11, 2011
PR
No. 107/2011
Order in the matter of Initial Public Offer of Vaswani Industries Ltd.
Whole Time Member, SEBI, has passed an Order dated July 11, 2011 in the matter of IPO of Vaswani Industries Ltd. The Order, inter-alia, includes the following directions:-
| i. |
Vaswani Industries Limited shall give withdrawal option to all the investors who
have been allotted shares in the non-institutional investors’ category and the
retail individual investors’ category for such number of shares by which the
allotment ratio was impacted due to withdrawals/rejections in the aforesaid
categories. The withdrawal option shall be kept open for a period of ten days. |
| ii. |
Investors who apply in the withdrawal option shall enclose a Delivery
Instruction Slip for the purposes of transferring such number of shares as may
be decided in the revised share allocation and the same shall be credited to a
separate escrow demat account. |
| iii. |
In the event of refund/withdrawal on the exercise of the withdrawal option by an
investor, the Company may deduct the expenses incurred in connection with its
IPO, to be certified by the merchant banker and the same shall be appropriately
apportioned from the subscription amounts due to the investors. However, the
maximum expense so deducted from any investor in exercise of the withdrawal
option shall not exceed 1% of the amount invested by any investor. |
| iv. |
On closure of the withdrawal option, if the subscription level after such
withdrawals falls below the minimum level of subscription as required by law,
the BRLM, Ashika Capital Limited, may purchase or arrange purchase through any
investor(s) identified by it of such number of shares so as to ensure that the
subscription does not fall below the minimum level of subscription.
Non-compliance of such condition shall result in refund of entire subscription
money to the investors and cancellation of all the shares so allotted by the
Company. |
| v. |
In the event of the Company failing to provide withdrawal option within the
given time frame, the BRLM shall take necessary steps to ensure that allotment
of shares is cancelled and money is refunded to investors within seven days of
such failure. |
| vi. |
Rikhav Securities Limited is prohibited to act as a syndicate
member/sub-syndicate member for all forthcoming issues till further directions. |
| vii. |
Bajaj Consultants Private Limited and its group entities, namely, Bajaj
Commodities Trading Private Limited, Bajaj Share and Stock Brokers Private
Limited, Vinodkumar Bajaj & Company HUF, Bajaj Consultants Private Limited,
Bajaj Retail India Ventures Private Limited, Bajco Consultants Private Limited,
Mr. Rajkamal Ramniwas Bajaj, Ramniwas Bajaj & Company and Mr. Vinodkumar
Ramniwas Bajaj are directed to cease and desist from bidding in an objectionable
manner till further directions. |
| viii. |
The ongoing investigation shall inter alia examine in detail the role of the
intermediaries involved in the Initial Public Offer of Vaswani Industries
Limited. |
The above directions are in continuation of the earlier Order dated May 26, 2011
in the matter.
Mumbai
July 11, 2011
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