Five X, a demerged arm of Octant Industries, leaves investors in limbo
Moneylife Digital Team 18 October 2011

The company was demerged 10 months back though it is yet to be listed; SEBI approved the listing after eight months but now BSE is yet to give its nod

The dwindling population of retail investors in India is time and again made to suffer due to wrongdoing by companies. Often, buybacks, delisting & demergers are announced, resulting in a sudden spurt in the share price and then the company defers from actually going through with the announcement, leaving small-time investors mired in losses.

Take the case of Five X Finance and Investment Limited, a demerged arm of Octant Industries, (formerly listed as ‘Octant Interactive’ on the BSE, or Bombay Stock Exchange), which has not yet been listed for more than 10 months now.

Octant Interactive Technologies Ltd demerged its financial division business and vested in Five X Finance and Investment Ltd, with a whopping 80% of its capital as per the demerger agreement, on 7 December 2010. However, the company has still not received approval from the BSE. This has left retail investors in the lurch with a majority of their capital stuck in the unlisted firm.

Moneylife had earlier reported on how the delay in listing of Five X, due to delay in approval by the Securities and Exchange Board of India (SEBI), had left investors trapped in the unlisted company. (See: Post de-merger, Octant Interactive shareholders still await listing of spun-off business ).

Now after eight months, the market regulator has given listing approval to the company. But this time it is the BSE which is yet to give its nod.

In a filing with the BSE, dated 2 September 2011, Octant Industries said,
“The demerged Undertaking/Resulting Company ‘Five X Finance and Investment Ltd’ has revived the approval under 19(2) (b) SC (R) Rules, 1957 from SEBI for listing the company with stock exchanges.”

It added, “Post the approval from SEBI, the company is under the process of obtaining listing approvals with the concerned exchange (BSE).”

Here again, retail investors are at the receiving end of the deal. “Now they are waiting for permission from BSE, but in the past 45 days there is no update or sign from the company regarding permission from the BSE. And we (investors) don’t have any other way as the company is not responding to email from investors as usual, and there is no other way we can contact them and get an update about the listing procedure. It is really a horrible experience as our entire money is stuck in Five X as the ratio was 80% to 20%,” complained an investor who had invested in Five X, who spoke to Moneylife preferring anonymity.

As per the Scheme of Agreement, post the demerger, Octant Interactive Technologies Ltd’s shareholders got 4 shares in Five X Finance and Investment for every 5 shares in Octant Interactive which they held. For every 5 shares of Octant Interactive, the equity holder was to receive 1 share of Octant Industries, each share with face value of Rs10. In other words, the shareholders of Octant Interactive were given 80% of their current holding in Five X Finance and 20% in Octant Industries. This effectively reduced shareholder stake in Octant Industries.

Industry experts say that investors are suffering with the majority of their capital stuck in unlisted firms solely due to delay in SEBI and stock exchange approval.

Interestingly, Octant Industries, which got only 20% capital, was successfully listed on 7 February 2011.   

Five X says that it is awaiting BSE’s approval. When asked about the investors’ money, a company official told Moneylife, “We can’t do anything unless we get listing approval from the BSE.”

An email query to BSE did not solicit any reply till the time of publishing this story.

Om Prakash Sharma
1 decade ago
Any update about Five X listing????? Listing is being delayed intentionally by not submitting necessary documents at BSE....It has been really long time 13 months and our all money stuck...How ruthless is this person G.K.Agarwal????? Wish same thing would happen with him in future.
Om Prakash
Replied to Om Prakash Sharma comment 1 decade ago
Now it has been 13 months and even 4 months later since getting permission from SEBI they have not completed formalities with to list their stock on BSE. Ruthless and shameless peoples (G.K.Agarwal)
Ramesh Thakur
1 decade ago
Other Investors whoever have update about Five X lisitng status please inform us.
Ramesh Thakur
1 decade ago
Dear Jignesh,
Everyone here is waiting for Five X listing. Please write a letter to BSE regarding permission status for Five X. IT has been 11 months long waiting since delisting. Entire money is stuck into Five X.
1 decade ago
Ninad Avasare
1 decade ago
Does it really consume so much time for getting permission for listing from BSE. or he is making delay intentionally???
Ninad Avasare
1 decade ago
Whatever these peoples did at moneycontrol to trap new investors prior to merger -demerger is a more horrible story. They had appointed some peoples to advertise this stock with hyper targets to lure peoples and attract them to buy this stock. Many gullible investors are trapped by them and they are eagerly waiting for their money back.
Ramesh Thakur
1 decade ago
The way by which these peoples doing same frauds again and again under the name of business restructuring i.e pumping and dumping shares etc...I think these crooks are 100% sure that SEBI wont take any action against them. It seems like they have insider connection with BSE also. As in octant there are few incidents that promoters sold their holding for perticular period and they informed BSE after they have sold upto their target. Such incidents indicates insider connection of promoters with the employees at BSE. There are lot corrupt peoples at BSE. It is high need that BSE sghould come under RTI Act 2005.
1 decade ago
Octant was a MASSIVE 2000 percent pump and dump from 10 to 200 then dumped back to 10 again

all the other 5 companies whose registered offices are in E 109 Crystal Plaza New link Road Andheri have risen a minimum of 100 percent WITHOUT ANY FUNDAMNETALS
some are at lifetime highs

Aggarwal is also associated with ACCENTIA TECH SEE

by the way since aggarwal comes from a silver trading family HE MAY (i said may not is) be using accentia tech which he seems to be associated with too to launder money since IT companies provide perfect cover for such activities

Ramesh Thakur
1 decade ago
hmm....really sad...Whatz SEBI is doing???????? they allowed him 10-12 yrs free for doing such frauds again and again and trapping poor retailers.
Here in above case(i.e Five X Finance) the extent of damage to retailers is very big ....imagine their 80% wealth is disappeared overnight since 15 dec 2010. And morover to this trouble company is not responding to their emails. Why email ID [email protected] is being provided by company??? Also there is not any much detail available.
1 decade ago
G.K. Agrawal of 40 years age is the main promoter of the company. He is a qualified Chartered Accountant. He belongs to a business family carrying on a Silver Jewellery business for last 30 years

I think he also uses s the name Raj Kishore Aggarwal

Mr.Raj Kishore Agrawal Director 305, Krishna- A, Vishal Nagar,Marve Road, Malad (W) Mumbai- 64 Occupation: Business

For links between the follwoing 5 comapnies First Object Concurrent Infra Octant Industries Accentia Technologies and Socrus BioSciences

1 decade ago
This company is in the grip of a dubious C A caled Giriraj Kishore Aggarwal
who is /has been associated with atleast 10-12 companies
currently heis assocciated with 6-8 companies FIve X is just one of these

There are 6 LISTED companies where Aggarwal is a promoter which have the same registeread address
E 109 Crystal Plaza New link Road Andheri
these are rockon Finatech Tilak Finance Banas Finace axon Infotech and Shreenath Commercial and finance
He was also the ex promoter of Concurrent infra and Octant industries

Also involved is Firstcall Investment of VLVLShastri
Ninad Avasare
1 decade ago
For getting permission from BSE only it is consuming that big time almost 45 days gone but they have not done any significant progress towards BSE listing, as Five X says they have sent listing request at BSE while other says they dont received any formal request from BSE. What is truth?
Ramesh Thakur
1 decade ago
Moneylife do you got any response from BSE..Though there is investor grievance cell at BSE but it is not of any use they never picks up phones and never replies to emails what is use of investor grievance cell at BSE????? BSE should be covered by RTI for the welfare of the investors...
Ramesh Thakur
1 decade ago
Well though Five X has told that " They have submitted listing request to BSE" . Some sources says that BSE has not received any request from them or they dont have submitted docs properly.
1 decade ago
Pls. help investors by listing this share immediately. Our Hard earned money is stuck in this share.
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