Stocks
Over 40 companies await SEBI nod for initial share sale, rights issue

According to latest information available with SEBI, draft documents for IPO from as many as 33 companies and preliminary papers for rights issues from 11 entities are under process

 
New Delhi: More than 40 companies including Bhushan Steel and TV18 Broadcast Ltd are awaiting green signal from market regulator Securities and Exchange Board of India (SEBI) to come out with their initial share sales and rights issues, reports PTI.
 
The initial public offering (IPO) documents of six of the companies -- Jain Infraprojects, Shirdi Industries, NKG Infrastructure, Tunip Agro, Palco Recycle Industries and Splash Media & Infra -- have been pending with SEBI since 2010.
 
Draft documents for IPO from as many as 33 companies and preliminary papers for rights issues from 11 entities are under process, according to latest information available with SEBI.
 
The data compiled from September 2009 onwards is updated till 3rd August.
 
Last month alone, three companies -- Bajaj Finserv Ltd, City Union Bank and Reliance Mediaworks Ltd -- filed papers for rights issue. V-Mart Retail Ltd submitted draft document for an IPO on 23rd July.
 
Bajaj Finserv and City Union filed the documents on 18th July while Reliance Mediaworks did it on 30th July.
 
So far this year, the market regulator has received draft documents for 10 initial public offers.
 
As per regulations, SEBI might issue observations on a draft offer document filed with it within 30 days from the date of receipt of papers, among others.
 
In some cases, observations are issued only after receiving satisfactory reply from lead merchant bankers if SEBI has sought any clarification or additional information from them.
 
Other entities awaiting SEBI nod for IPOs include Javved Habib Hair and Beauty, Ambuja Intermediates, Repco Home Finance, Credit Analysis Research, Bohra Industries, Advanta India and Tara Jewels.
 
According to SEBI, the follow-on public offer document of Mukesh Udyog Ltd is pending since early 2011. The company filed its papers on 29th March last year.
 
Amid sluggish market conditions, the amount raised by way of initial public offers has dropped over 60% in the first six months of this year.
 
In the six months ended June, Indian companies mopped up just Rs1,264 crore, compared to Rs3,392 crore in the same period last year.
 
Major initial share sales so far this year include that of commodity bourse MCX's Rs663 crore IPO. Sesides, Tribhovandas Bhimji Zaveri and Specialty Restaurants have raised Rs200 crore and Rs176 crore respectively.
 

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COMMENTS

anantha ramdas

5 years ago

Most IPOs and rights issue in the last few months have brought no cheer to the investing public and in any case the market itself has been very erratic and unpredictable.

Personally I would rather take the risk of investing in blue chip companies where even if I do not make a profit, I won't lose my capital base. Now, when IPOs come, invariably they are with varying "premiums" and after listing I can get them cheaper!

From your list of likely IPOs and rights only a handful are worth considering after serious
study.

SEBI bars International Hometex, three directors from securities market

SEBI barred International Hometex, its CMD Vineet Kumar Agarwal and directors Vinod Kumar Agarwal and Vishwinder Nath Gupta from markets till they resolve all 21 pending investor grievances

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has barred textile company International Hometex Ltd and its three directors from the securities market for persisting lapses in redressal of investor complaints against the firm, reports PTI.
 
As per the order, International Hometex, its Chairman and Managing Director Vineet Kumar Agarwal and two other directors (Vinod Kumar Agarwal and Vishwinder Nath Gupta) have been barred from accessing and dealing in securities market till all the pending investor grievances are resolved by them.
 
The order passed by SEBI Whole-Time Member Rajeev Agarwal said that failure to redress investors' grievances by a listed company adversely affects the confidence of investors in the securities market.
 
"If such defaults are not dealt with by appropriate enforcement action, the investors will not have a protected environment for their investments in the securities market.
 
"In this case, the company has failed to redress the aforesaid investors' complaints and its directors are also responsible for such default," SEBI said.
 
The company was formerly known as 'Trimbak Industries Ltd' and its shares are listed on the BSE, Jaipur Stock Exchange Ltd and Delhi Stock Exchange Ltd. However, trading in its shares is suspended on all these exchanges.
 
Some of the complaints against the company are pending unresolved since 2003, SEBI said.
 
The regulator said it has been receiving investors' grievances against the company and the same were forwarded periodically to the company for redressal.
 
However, the company failed to resolve such complaints and submit the Action Taken Report (ATR) on such complaints. As of March 2011, there were 58 complaints pending unresolved, after which SEBI in April last year asked the company to resolve those complaints within 15 days and submit a status report.
 
SEBI's letter to the company was returned undelivered with the remark "office shifted". A public notice also did not elicit any response, after which SEBI issued show cause notices in February 2012 to the company and its directors.
 
At the hearing in March 2012, the company said it has taken steps to come out of the suspended list of companies and would adhere to all the compliance requirements, including redressal of investors' grievances.
 
Taking into account the company's submission, SEBI (Securities and Exchange Board of India) asked it to resolve all the pending complaints and submit ATR by 2 July 2012, failing which it would face enforcement actions.
 
However, the company failed to redress the grievances within the stipulated time and there are 21 complaints pending against the company for redressal till date, SEBI said.
 

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SEBI shortlists 13 agencies for media campaign job

The agency would be roped in to assist SEBI in its campaign aimed at educating and creating awareness among retail investors and converting the current savers into investors

 
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has shortlisted 13 agencies in its search for an advertising agency to plan and execute its media campaign in newspapers, magazines, television and radio channels, reports PTI.
 
SEBI, which regulates stocks, mutual funds, brokerage and various other segments of capital market, had invited Expression of Interest (EoI) from various agencies in April this year.
 
After going through the EoIs submitted to it, SEBI has now shortlisted 13 agencies, out of which it would select one entity for providing various media services.
 
The short-listed media agencies include Alaknanda Advertising, Allied Media Network, Carat Media Service, Crayons Advertising Ltd, Dentsu Communications, Inter Publicity, Lintas Media Group, Lodestar, Prachar Communications, Purnima Advertising Agency, RK Swamy BBDO, Span Communications and Zenith Optimedia.
 
The agency would be roped in to assist SEBI in its Investor Education and Awareness Campaign, which is aimed at educating and creating awareness among retail investors and converting the current savers into investors.
 
The selected media agency would be required to suggest appropriate media plan to the regulator to meet the objectives of its advertisements.
 
Besides, the agency would also publish/broadcast the advertisements in newspapers, magazines, TV channels and radio channels, as also collect the copies of the published advertisements and submit the same to SEBI.
 
The advertisement material will be provided by SEBI and the rates would not exceed that of the government's advertisement agency DAVP.
 
The agency would be required to handle advertisement campaign in TV channels, FM radio, newspapers, magazines and outdoor media and should not have been found guilty or penalised by any court during the last three years.
 
It should have been in existence in India since April 2008 with ability to service the client through their office in Mumbai and should be accredited to the Indian Newspaper Society (INS), Advertising Standards Council of India (ASCI) or Advertising Agencies Association of India (AAAI).
 

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COMMENTS

Suresh Bhura

5 years ago

Congratulations team Crayons.

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