Despite the BSE clearing the listing of the stock in July last year, SEBI has not yet given its nod and has not shed any light on the matter to the worried investors

It has been a long ordeal for investors in Raheja group promoted Innovassynth Investments Limited (IIL), a company that is still awaiting approval for listing from the Securities and Exchange Board of India (SEBI) more than a year after filing necessary documents with the regulator. Even after an RTI application, SEBI continues to sit on the fence, refusing to give any clarity on the matter to concerned investors.

The company was to get listed in 2009. The Bombay Stock Exchange (BSE) apparently even cleared this listing in July 2009 with the condition that SEBI approval be taken as the listing would be without an initial public offering (IPO). IIL applied for permission from SEBI on 22 July 2009, but has not yet received the go-ahead from the regulator. It remains a mystery as to why SEBI has delayed action on this matter. Moneylife understands that SEBI has been raising queries with the company on certain issues. The company in turn claims that all of these have been answered and is pursuing the matter with the regulator. However, there is no mention as to the nature of these queries either on the SEBI website or on the company's portal.

It is not clear why SEBI is not moving fast enough to get the stock listed on the stock exchange. Meanwhile, investors are crying foul over the issue of equity capital by unlisted associate company Innovassynth Technologies (India) Limited (ITIL). The main purpose for forming IIL was to take over or acquire the equity shares of ITIL from Futura Polyesters Limited (FPL) under a Scheme of Arrangement to be entered into by FPL and IIL with its shareholders. Initially, FP was to transfer its entire shareholding in ITIL to the shareholders of FP at a ratio of 10:23, where shareholders of FP would get shares in ITIL in the ratio of their holdings.

However, under the revised Scheme of Arrangement, which received approval of shareholders of both FPL and IIL and was sanctioned by the High Court on 4 July 2008, FP would first transfer its entire investment in ITIL to IIL. In consideration of the above transfer, IIL would allot its equity shares of the face value of Rs10 each to the shareholders of FPL in the proportion of 5 equity shares in IIL against every 11 equity shares held in FPL. The Scheme also envisaged that IIL will, after allotment of its equity shares, approach the BSE for listing its shares along with its existing shares, subject to applicable regulations and approvals.

With SEBI refusing to budge over the listing of IIL's stock, investors are now stuck with a company that is possibly being subjected to manipulation behind the scenes.