SEBI barred four promoters of the PG Electroplast for diverting funds, manipulative activities and trading in its own shares during IPO in 2011
Market regulator the Securities and Exchange Board of India (SEBI) has barred PG Electroplast and its four promoters from markets for 10 years for manipulation of funds raised from the company’s initial public offering (IPO).
In its probe, SEBI found PG Electroplast and its four promoters, Promod Gupta, Anurag Gupta, Vishal Gupta and Vikas Gupta allegedly diverting funds and indulging in manipulative activities during its IPO in 2011.
SEBI order also reveals that PG Electroplast’s share prices have been fluctuated by diverting funds and indulging in manipulative activities during days of IPO in 2011. It came up with an IPO of 57.45 lakh shares at Rs210 per share, which opened on 7 September 2011 and closed on 12 September 2011.
According to SEBI, PG Electroplast suppressed material facts in its IPO prospectus as well as siphoning off and diverting the proceeds for the purpose of purchasing its own shares. It has failed to disclose information in the prospectus regarding funds raised through Inter corporate Deposits (ICDs). It had also diverted the IPO proceeds to entities who had purchased its shares, among others. SEBI then directed the company promoters to take urgent and effective measures to recover all the money on account of investments in ICDs, contracts for purchase of land which have not fructified till now and report it to SEBI till 10 May 2014.
However SEBI said that, the period of ban already undergone by the company and its promoters pursuant to the interim order on 28 December 2011, wherein the entities were restricted from the capital markets shall be taken into account for the purpose of computing the period of prohibition imposed in this order.
On Tuesday, PG Electroplast closed 10.16% up at Rs172.10 on BSE, while the 30-share Sensex closed marginally up at 21,832.
While loan impairments in the system were going up, the private banks had enough profitability and capital as a buffer. Also, price-earnings multiples were inexpensive, says Morgan Stanley
Big private lenders – HDFC Bank, HDFC, ICICI Bank and Axis Bank – have been attractive investments for the last few months. Morgan Stanley’s view, in a research note, was that while impairments in the system were going up, these lenders had enough profitability and capital to buffer them. Also multiples were inexpensive. At the same time, there have been concerns about the impact of the bad loan cycle on other banks, especially SOE (state-owned enterprises) banks and niche non-bank lenders.
However, now the economy is stabilising and systemic risk from external factors has reduced, finds Morgan Stanley. Also, with LD (loan-deposit) ratios at around 77%, the liquidity situation is better. Against this backdrop banks will do well. “We are thus putting OW (overweight) on almost all private lenders”, says Morgan Stanley. The view on SOE banks remains the same, i.e. profitability is too low to take care of high credit costs. Also, the SOE banks face a substantial capital raising cycle – implying material dilution ahead for minority investors.
Morgan Stanley raises its view on the India Financials industry to Attractive. It believes that the industry is poised to give very strong returns. The stocks have lagged the broad market over 1-year and 3-year periods, driven by concerns of economic slowdown and consequently the bad loan cycle. As they recede, multiples for private lenders with strong capital should expand.
The performance of banks in the stock market is shown in the chart below:
The key forecasts with respect to private lenders is summarised in the table below:
In conclusion, the Morgan Stanley research note recommends profitable private lenders in the stock market to long term investors.
Dhoni had filed a defamation suit claiming Rs100 crore damages from the Zee Media for allegedly telecasting 'malicious' news that he was involved in betting, spot and match fixing of IPL matches
The Madras High Court on Tuesday restrained TV channels like Zee News and News Nation from telecasting any news linking India cricket team captain MS Dhoni with the Indian Premier League (IPL) betting or fixing scandal.
The interim order, effective for two weeks, was passed by Justice S Tamilvanan on a defamation suit filed by Dhoni claiming Rs100 crore damages from the Zee Media Corporation for allegedly telecasting 'malicious' news that he was involved in betting, spot and match fixing of IPL matches.
“I am of the view that there is a prima facie case and the balance of convenience is also in favour of the plaintiff. Hence, interim injection granted for a period of two weeks,” the judge said in his order after perusing Dhoni’s affidavit.
He issued notice to defendants Zee Media Corporation Ltd, Zee News Editor and Business Head Sudhir Chaudary, IPS officer G Sampath Kumar (who initially probed the IPL betting scam) and News Nation Network Pvt Ltd.
Dhoni, in his suit, submitted that the defendants had been carrying highly defamatory, scandalous and libellous false reports and statements since 11 February 2014.
The first and second defendants Zee Media Corp (Zee News) and Sudhir Chaudary, editor and business head of Zee News Channel, Essel Studios, Noida, Uttar Pradesh, in collusion with the third defendant IPS officer G Sampath Kumar have been telecasting and broadcasting and posting in their websites false reports insinuating that Dhoni was involved in illegal activities of betting, match fixing and spot fixing.