Another junk IPO: Rs2.60 crore made by related directors on day one

IPO manipulation is back for sure. Indo Thai Securities hit an intraday high of Rs99 today; two firms belonging to related directors individually picked up 7.50 lakh shares worth Rs5.73 lakh each on the BSE & NSE; they made a combined profit of Rs2.60 crore in a few hours. The regulators remain silent 

Yesterday another ‘Grade 2’ IPO, Indo Thai Securities, listed on the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange). Opening a rupee higher than its issue price of Rs74, the stock fell 69% to close at Rs23, after hitting an intraday high of Rs99 and a low of Rs18.

“Trade with confidence” is the tag line of Indo Thai Securities and two firms run by the related directors certainly did.

Vikabh Securities Pvt ltd run by Bharat Hardattrai Biyani bought 7.50 lakh shares worth Rs5.73 crore on the BSE and Asian Market Securities Pvt Ltd run by Kailash Hardattrai Biyani, put in a similar amount buying the same number of shares on the NSE. And yes, like the M and B Switchgear case (IPO manipulation is back with a bang. Five firms with one director and a profit of nearly Rs9 crore), both firms entered at a price of around Rs76.4 and exited around Rs93.8, mopping up a consolidated profit of Rs2.6 crore in just a matter of a few hours. With the market regulators sleeping, such traders will definitely trade with confidence.

 Apparently both the directors are the promoters of Abhinav Capital Services which is listed on the BSE. There has hardly been any trading of the stock since October last year.

Unfortunately for retail investors who put their money in looking to make a substantial profit, they would have severely burnt their fingers. The stock shows no signs of moving up again. And as for M and B Switchgears, since Moneylife had reported (IPO manipulation continues, recent offerings exhibit extreme volatility and five out of seven IPOs listed in October hit their extremes today ) that the scrip had hit its all-time high of Rs390, it has been following a downward trend ever since. The stock closed at Rs180.65 yesterday, down 54%.

Apart from this case, three other IPOs listed last month are trading at 80% below their issue price (See Chart). Whereas Flexituff, Onelife Capital and Prakash Constrowell have managed to muster good gains, but how long these gains would last is the big question. That’s the sorry state of the Indian IPO market.




Jayant Shah

6 years ago

The promoters and the underwriters should be asked to buyback shares at 90% of issue price till one year from the issue.


6 years ago



Atul Doshi

6 years ago

We all are talking about problems and fixing responsibility on either regulator or exchanges. Ofcourse it is their duty to stop such unscruplous elements buy how? Make things difficult for Merchant Banker- Promoter- operator nexus by simply putting all IPO's below grade 3 in trade- to- trade segment from very first day of listing till 6 months. This is one of the suggestion to restrict such activities.


6 years ago

This is only one side .There is another question - Why retailers are not learning lessons even from many such stories ?. These fraud players are always winning only because of the presence of retail buyers for these third class IPO's from secondary market.


6 years ago

I think it should be clarified that grade 2 is below average fundamentals. Given their better information sets rating agencies have been able to predict the fundamental ability of the companies well.

2G case: Court dismisses bail pleas of Kanimozhi, 7 others

Special judge OP Saini dismissed the bail pleas, including that of former telecom secretary Siddharth Behura, saying the charges levelled against them were of “very serious nature”

New Delhi: In a setback to DMK MP Kanimozhi and seven others, a Delhi court today dismissed their bail pleas in the second generation (2G) spectrum allocation case, reports PTI.

Special judge OP Saini dismissed the bail pleas, including that of former telecom secretary Siddharth Behura, saying the charges levelled against them were of “very serious nature”.

Others whose bail petitions were dismissed were former telecom minister A Raja’s erstwhile private secretary RK Chandolia, Swan Telecom promoter Shahid Usman Balwa, Kalaignar TV MD Sharad Kumar, Kusegaon Fruits & Vegetables directors Asif Balwa and Rajiv Agarwal and Bollywood filmmaker Karim Morani.

“The facts of the case as well as the charges levelled against the accused are of very serious nature having grave implications for the economy of the country,” the court said.

“I am satisfied that no case for bail is made out for any of the applicants/accused,” it said.

While dismissing the bail application of Ms Kanimozhi, daughter of former Tamil Nadu chief minister M Karunanidhi, the court said, “By no stretch of imagination she can be said to be suffering from any discrimination on ground of being a woman.”

Brushing aside Ms Kanimozhi’s plea for bail under Section 437 of the Criminal Procedure Code on grounds of being a woman, the court said, “Accused Kanimozhi Karunanidhi belongs to upper echelons of society and is also a Member of Parliament. By no stretch of imagination, she can be said to be suffering from any discrimination on the ground of being a woman”.

Special judge Saini dismissed her bail application, along with those of four others—Sharad Kumar, Morani, Asif Balwa and Rajiv Agarwal—even though CBI had no objection to their release on the ground that they face trial for offences, entailing a maximum jail term of only five years, if convicted.

The court rejected CBI’s stand saying, “There is no distinction between the accused charged on the basis of main charge-sheet and supplementary charge sheet. There is only one charge sheet in the eyes of law.”

The court also dismissed the pleas of various accused for bail on the ground that they had been languishing in jail for over five to nine months, while the trial was unlikely to conclude in near future.

“It is repeatedly submitted that these reasons make out good ground for bail to the accused. I have bestowed my careful and anxious consideration to these submissions. In the facts and circumstances of a particular case, these factors may be relevant consideration but in some cases it may not be so,” justice Saini said.

The court said after framing of charges under ‘a more serious’ section of 409 IPC (criminal breach of trust) which carries life imprisonment as maximum punishment, “there is no favourable change in the case of the accused.”.




6 years ago

This are the Home Grown TERRORISTS and must get DEATH Penalty and not Bail. They are responsible to push millions of People below Poverty Line by LOOTING Public Money and leave them for Hunger, Suffering and Starving. TIHAR loves the LOOTERS of India and still waits for Sonia Gandhi, PC and Karunanidhi. Thanks to SC, Prashant Bhushan, S Swamy etc...Keep it up, India is Proud of You !!!

A thought for school

An organisation which helps to school underprivileged children

The high dropout rate of children from government schools is a serious issue in India. Additionally, poverty ensures that parents are unable to send children to school. To alleviate this, Shobha Murthy started Aarambh in 1997. An NGO working in the slums of Turbhe (Navi Mumbai), it enrols underprivileged children in schools and provides them free tuition. Aarambh, in Sanskrit, means beginning. “These children are the first generation in their families to go to school. So the name,” says Ms Murthy, a founder-trustee.

“It was a new start to my life as well,” says this chartered accountant who had earlier worked as an auditor with USAID in India. That job gave her an opportunity to visit many tribal villages in Rajasthan, Madhya Pradesh and other parts of India which kindled her interest in social work. She joined CRY (Child Relief and You) to learn about the legal and other facets of social work in India, with a clear aim to start an NGO of her own. It was while working with CRY that Ms Murthy set up Aarambh with Dr SS Rao, a medical practitioner, and Sudhir Sudhal, a qualified social worker. Ms Murthy used all her savings to fund the project. She continued with CRY (until 1999, when she quit) working for two hours each evening teaching at Aarambh. “When I approached the education officer of Thane Zilla Parishad, he supported my idea and encouraged me to start the NGO,” says Ms Murthy.

Initially, she faced resistance from the communities. “A major problem with most children was the lack of a birth certificate without which they could not enrol in a school. Convincing parents of the importance of schooling was another major task,” she says. Aarambh began by issuing medical certificates and requested education officials to accept these and admit students to municipal schools.

Everyday, four to five students enrolled with Aarambh. Municipal schools also saw a considerable increase in students. Ms Murthy proudly says, “The first batch of students just graduated. I feel so proud when I see them.” One such child is Vijay Ranbavle who was extremely naughty and didn’t want to go to school. Aarambh persuaded him to study and he is now a graduate employed at JP Morgan. “Vijay still visits us and even helps us in our projects,” says Ms Murthy.  
Today, Aarambh has six centres in Turbhe and other nearby areas with about 2,000 children. “I remember the school consisted just of three-four rooms. Today, it is a whole building, with many students attending regularly,” Ms Murthy says. Currently, Aarambh runs pre-school classes along with a daily a mid-day meal programme. “The mothers work as maids and come home late in the afternoon. Till then, these kids are without any food. So we started mid-day meal for them, comprising vegetable-based khichidi and fruits,” Ms Murthy says. Aarambh assists students to secure free admission to an English medium school in Vashi, Navi Mumbai. Others are also enrolled in Hindi and Marathi medium government schools.

Aarambh has skill development programmes for youth including vocational courses like screen-printing and making paper products as well as computer courses and leadership training. It also provides placements for the youth it trains. Around 170 youngsters are enrolled in such programmes free of cost. Aarambh also runs skill-development, job-oriented and income-generation courses for women such as tailoring, embroidery, candle-making, etc. Through savings and self-help groups, women are encouraged to open and operate their own bank accounts. Aarambh also conducts periodic health check-ups and other awareness campaigns for the locals.

One can volunteer as a teacher, act as personal tutor for a child and even help in coordination. You can donate in kind as well as financially. All donations are eligible for tax exemption under Section 80 (G) of the Income-Tax Act.

33/B, Gitanjali
Plot 52, Sector 17, Vashi
Navi Mumbai 400 703
Tel: 022-2768 0965
Cell: 98206 16940
[email protected]



Rakesh Gupta

6 years ago

Mrs. Shobha Murthy's efforts in the Turbhe Slum Area is noteworthy. She has been working in this area for a long time now, and the results are bearing fruit.

We, from the Rotary Club of Navi Mumbai, recently donated "Safe Drinking Water" Filtration-equipment and Storage tanks to the school.

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