Company’s IPO prospectus says it cannot compare the promise and performance of Galaxy Entertainment because it does not have the IPO records of Galaxy which are legal documents. Still, SEBI has cleared the Future Ventures’ prospectus, unaware of the irony
Future Ventures India Limited, the Kishore Biyani-promoted investment company, recently announced an initial public offering (IPO) to raise Rs750 crore.
One of its group companies is Galaxy Entertainment Corporation, which was listed on the Bombay Stock Exchange, before Future Ventures acquired it three years ago. But the prospectus for the current IPO planned by Future Ventures says that it does not have any access to information about the promise and performance of this company.
Galaxy was promoted by Purnendu Chatterjee, once an associate of George Soros and a key promoter of Haldia Petrochemicals. Mr Chatterjee sold Galaxy to the Future group after the company's managing director expired. The Future Ventures' prospectus says, "We do not have access to the offer documents and other records of Galaxy. We are, therefore, unable to provide details on the promise made and the performance achieved by Galaxy."
This is strange. As Future Ventures acquired Galaxy and should have had all the records of an important corporate action such as an IPO in place. A prospectus is a legal document. The fact that a listed company has lost a legal document like the prospectus is quite extraordinary.
The prospectus could have been procured through book running lead managers too which helped the company to come out with its IPO. These lead managers are few in number and they should have been able to source the information.
Enam Securities, JM Financial, Kotak Investment Banking are the lead mangers for Future Ventures' IPO and the company could have taken their help to get access to the previous records of Galaxy, including the information for the prospectus.
The data could have come from a third party provider of information like Prime Database. Worst, all prospectuses are screened and examined before they are cleared by the market regulator Securities and Exchange Board of India (SEBI). The company could also have accessed the required information relating to Galaxy from SEBI too-assuming that SEBI has a record of all the issues that it clears! But we are not sure whether Future Ventures made any efforts to get hold of a prospectus.
What is ironical is that SEBI decided to give a 'go-ahead' for the Future Ventures prospectus, unaware of the irony that a prospectus it had cleared 11 years ago has simply vanished from the system! As against this, won't the regulated entities be put through hell if any compliance paper of theirs is found missing?
Reliance Communications has launched ‘Mobile Banking Services’, its new VAS service in association with SBI
Telecom operator, Reliance Communications has launched 'Mobile Banking Services', its new value-added services (VAS) service in association with the State Bank of India (SBI). Reliance consumers can use facilities like balance inquiry, mini statement, fund transfer, cheque book issuance, mobile recharge and bill payment at any time and place through the use of their cell phones.
Reliance subscribers will not require any special mobile application or GPRS to use the service, but they should have an active current/savings account with SBI. The customers will have to register for the services with SBI. The user has to dial *595# to view simple menu choices and key-in your choice. Customers will be able to view account balance, get mini statements, do fund transfer, change MPIN or recharge their mobile account. He will also receive confirmation regarding successful transaction over SMS.
Mahesh Prasad, president-wireless business, Reliance Communications said, "Consumers use their cell phones to play games, read news headlines, surf the Internet, do online trading, share documents, write blogs, do chatting, listen to music, book a ticket for movie, etc. And still consumers continuously keep demanding more and more from their phones. This mobile banking service is yet another useful service for our customers, they can now avoid those long queues at the SBI branches"
Swan Telecom director Vinod Goenka, Unitech Wireless (Tamil Nadu) managing director Sanjay Chandra, and three top officials of Reliance ADAG Gautam Doshi, Surendra Pipara and Hari Nair taken to Tihar Jail after Special Court concurs with CBI that they could hinder the smooth progress of investigations
A special court today denied bail to five corporate executives named in the case involving the allocation of second generation (2G) telecom spectrum during the tenure of former communications minister A Raja.
Judge OP Saini dismissed the bail petitions of Vinod Goenka, director, Swan Telecom, Sanjay Chandra, managing director, Unitech Wireless (Tamil Nadu), and Gautam Doshi, Hari Nair and Surendra Pipara, all three officials of the Reliance Anil Dhirubhani Ambani Group.
The five officials were taken to Tihar jail following the court decision in the afternoon. It was reported later in the day that their lawyers have petitioned the Delhi High Court seeking bail and that these petitions were likely to be taken up on Thursday.
They had all been named by the Central Bureau of Investigation (CBI) as co-accused along with Mr Raja, his personal assistant RK Chandolia, former telecom secretary Siddhartha Behura and Swan Telecom promoter Shahid Balwa, who are already in judicial custody.
They are charged with manipulating the grant of telecom licences and radio airwaves in 2007-08 that, according to the chief government auditor, could have caused the state exchequer a presumptive loss in revenues of Rs1.76 lakh crore.
"All the bail applications have been rejected," judge Saini said. Subsequent to the rejection of the bail pleas, the five executives even petitioned the court for interim bail for seven days, which was also turned down.
"The accused will be sent to jail," a CBI official said. A lawyer for the investigative agency said the executives would remain in jail until a higher court granted them bail.
The shares of the telecom firms slipped following the court order. Shares in Unitech fell 5%, DB Realty fell 4.2% and Reliance Communications was down 2% while the main stock index closed up 1.84% and an otherwise positive trading day.
The court did not allow the bail plea of Surendra Pipara, even though he is said to be ailing and the Special Public Prosecutor UU Lalit did not oppose the application. In fact, the judge had reserved his order after hearing the arguments of all sides on Friday and asked the company officials to remain present during the proceedings today.
On Friday, pleading before the court to take the five executives into custody, Mr Lalit said, "Considering the matter on record, complicity of the accused in the crime is clearly made out. The act complained of and offences alleged are serious, having made deep inroads in public interest and financial affairs of the state."
"The accused are holding high positions and now that the names of witnesses are disclosed, some of whom are directly working under/or amenable to their directions, the possibility of winning over and/or influencing the witnesses is clearly there," the prosecutor said, while opposing the bail petitions. The CBI also feared that the accused may abscond and that may hinder the smooth progress of the trial.
Senior advocates KTS Tulsi, Mukul Rohatgi and Ranjit Kumar, arguing for the corporate executives, had said that the arrest of the accused was not required during the probe and sending them to jail now would amount to a "travesty of justice" and was an "astounding proposition" of law.
Meanwhile, Norway's Telenor said today that it has requested Sanjay Chandra, the chairman of its India joint venture, to step down from his post, following the charges against him in the telecom licensing scandal. Telenor, which owns a controlling stake in Unitech Wireless, said in a statement that it had asked Unitech to name a replacement for Mr Chandra for as long as the 2G case is going on in India.
Mr Chandra is managing director of Unitech Ltd, which is Telenor's partner in the India mobile joint venture Unitech Wireless.