sebi:WTM/KMA/CFD/402/07/2011
Facts / Headnote
Directions issued requiring the issuer to give a withdrawal option to allottees, restricting Rikhav Securities Limited from acting as syndicate member, directing Bajaj Consultants and group entities to cease and desist from bidding in an objectionable manner, and continuing the investigation; Order dated May 26, 2011 modified to this extent.
Provisions invoked
- s. 19
- s. 21
- s. 69
- s. 73
- s. 11A(2)
- s. 71
- s. 70
Regulations relied on
- SEBI (ICDR) Regulations, 2009 — 107
- SEBI (PFUTP) Regulations, 2003 — 3
- SEBI (PFUTP) Regulations, 2003 — 4
Parties
- Vaswani Industries Limited
- Ashika Capital Limited
- Rikhav Securities Limited
- Bajaj Consultants Private Limited and its group entities
Holding
SEBI directed Vaswani Industries Limited to offer a withdrawal option to allottees in the NII and RII categories for shares affected by withdrawals/rejections, with Ashika Capital Limited as BRLM to facilitate revised allocation and escrow arrangements, and further directed Rikhav Securities Limited to cease acting as syndicate member and Bajaj Consultants and its group entities to cease and desist from objectionable bidding, pending completion of investigation.
Full text
Page 2 of 23 BRLM”), Ashika Capital Limited had filed the Draft Red Herring Prospectus of the Company with SEBI on September 29, 2010. The issue opened on April 29, 2011 and closed on May 3, 2011. The Company made an offer of 10,000,000 equity shares in a price band of `45/- to `49/-. As on the date of the closure of the issue, the Company had received bids in the following manner: i. Bids for 8,00,040 shares from Qualified Institutional Buyers (hereinafter referred to as “QIBs”), ii. Bids for 16,935,240 shares from Non-Institutional Investors (hereinafter referred to as “NIIs”) and iii. Bids for 23,887,440 shares from Retail Individual Investors (hereinafter referred to as “RIIs”). The Issue was subscribed to the extent of 4.16 times after removing multiple and duplicate bids and before technical rejections. The level of subscription in the issue was at 0.16 times (QIBs), 11.29 times (NIIs) and 6.82 times (RIIs). After considering the „Cheque Returns‟ and „Technical Rejections‟ instances, the subscription to the issue dropped to 1.28 times. The Company has registered its prospectus dated May 6, 2011 with the Registrar of Companies, Madhya Pradesh & Chhattisgarh. The issue price was fixed at `49 and the securities issued through the IPO have been allotted to investors on May 10, 2011. In the meantime, SEBI received various complaints as mentioned in paragraph 1 above, and pursuant to conducting a preliminary examination, SEBI passed the Order dated May 26,
Page 3 of 23 Exchange Wise Bid Registered Exchange Bids Bids Quantity Bids thru Exchange 7,543 41,854,920 LESS Invalid Bids Multiple 53 237,360 Invalid Bids Duplicate 2 240 TOTAL (B) 55 237,600 Bids not Banked (C ) 666 6,392,040 Bids Banked [ D = (A-B) - ( C ) ] 6,822 35,225,280 Bids NOT registered. - Applications banked Add: Rejected under Application Banked, Bid not Registered 5 5,040 ( E ) 5 5,040 Total Banking Applications (F) =( D + E ) 6,827 35,230,320 Less Application Cheque Returns 2,785 20,734,560 Difference in Quantity(Book Vs Bank schedule -
Page 4 of 23 Insufficient funds 4,92,360 2.91 1.21 2,41,25,640 Withdrawal 6,06,000 3.58 1.49 2,96,94,000 Technical rejections 0 0.00 0.00 0 Total NII Rejections 1,56,71,160 92.56 38.42 76,78,92,720
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Source: SecMarx — sebi:WTM/KMA/CFD/402/07/2011. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.