sebi:WTM/PS/IVD-ID5/20/MAY/2012
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Facts / Headnote
Ad interim ex-parte Order dated December 28, 2011 confirmed against Chin Info Tech Pvt. Ltd.; application to vacate or modify rejected.
Provisions invoked
- s. 19
Parties
- Chin Info Tech Pvt. Ltd. (PAN: AADCC6173C)
Holding
The Whole Time Member confirmed the directions issued vide the ad interim ex-parte Order dated December 28, 2011 against Chin Info Tech Pvt. Ltd. in the matter of the IPO of PG Electroplast Limited, declining to vacate or modify the order.
Full text
2 of 5 book building process. The issue price of the IPO was at a price of ` 210 per equity share, aggregating to approx. ` 120.65 crores. The investigation was initiated in the IPOs including PGEL and the prima facie findings revealed that a predominant portion of the proceeds of the IPO of PGEL was diverted by PGEL for operations in the equity market as well as for questionable land deals and raw material purchases leading to the suspicion that the issue was for siphoning off and/or diversion of funds. Further, the prima facie findings revealed that PGEL had suppressed several material facts in the offer documents (Red Herring Prospectus and Prospectus) pertaining to the company, utilization of proceeds of issue, agreements for purchase of land etc. and had also made several mis- statements relating to ICDs, placement of purchase orders, general corporate purpose, investments in land etc. Further, three of the allottees namely Chin Info, M. J. Commodities Pvt. ltd. and Sunlight Financial Advisory Pvt. Ltd. were funded ` 94 lakhs, ` 86 lakhs and ` 40 lakhs respectively by the entities receiving the money diverted by PGEL.
3 of 5 Vincom. Accordingly, in the month of August 2011, Chin Info received ` 11 lakhs and in September 2011, it received ` 94 lakhs. Except for this transaction of ` 1.05 crores, it had no other dealings with Wonder Vincom. d. The said ` 94 lakhs was due to it from Wonder Vincom since April 30, 2010. e. The IPO application was made by it through its own funds and had nothing to do with regard to the transfer of funds from Wonder Vincom. f. It was in the process of acquiring 26% shareholding of Swadeshi Industries Limited and Leasing Limited (hereinafter referred as M/s Swadeshi) and had to make an open offer to acquire upto 14,06,067 fully paid up equity shares of M/s Swadeshi at a price of ` 15 per share. The letter of offer for the same was filed with SEBI on November 24, 2011. As per the scheduled plan, the offer had to open on January 10, 2012 and close on January 23, 2012. Due to the ad interim ex-parte order dated December 28, 2011, the open offer has come to a hold and has restricted it from making an open offer.
4 of 5 b. Nakoda Exploration Pvt. Ltd. - 5000 shares at the rate of ` 500 per share c. Patel Fashion Pvt. Ltd. - 6000 shares at the rate of ` 500 per share d. Sahani Infradevelopments Pvt. Ltd. - 4200 shares at the rate of ` 500 per share
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Source: SecMarx — sebi:WTM/PS/IVD-ID5/20/MAY/2012. 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.