Vaswani Industries Ltd IPO Message Board (Page 14)

SEBI widens net for probing into fake IPO bidding
New Delhi, May 29:

SEBI has begun a probe into possible use of fake bids for artificially pushing up the subscription levels in numerous IPOs over past few years, with a modus-operandi similar to that in Vaswani Industries case.

After halting Vaswani Industries’ listing earlier this month on suspicion of irregularities in its IPO bidding, the market watchdog last week ordered a detailed probe into the matter, which would be completed by the next month.

However, SEBI has now received complaints of many IPOs in past 2-3 years, alleging that promoters roped in some ’operators’ to inflate the IPO subscription level with fake bids, which they withdrew at a later stage or cashed in on the first day of listing.

Concerned over the possible scale of the alleged manipulation, SEBI has decided to conduct a detailed probe on a number of IPOs and would soon seek relevant data and information about them from stock exchanges, merchant bankers and other entities, sources said.

The probe would focus particularly on those IPOs where bids were withdrawn during the time the offers had remained open or those cases where shares had plummeted sharply on the first day of the listing, they added.

Typically in such cases, the IPO-bound companies’ promoters, or at times merchant bankers with or without the knowledge of the company, approach certain ‘IPO operators’ to put in fake bids in investor categories like retail, HNIs (High Networth Individual) and body-corporates. These fake bids help inflate the overall bid levels and thus attract the innocent investors for the public offer.

If the desired levels of subscription are achieved during the bidding time, the fake bids are withdrawn, while in some cases the shares allotted for these fake bids are sold off within minutes of the listing.

In some cases, means like stop-payment and wrong cheques are also used to withdraw the bids at a later stage.

The funding for these fake bids is provided by company promoters or merchant bankers to the operators, sources said.

According to them, more than promoters, it is merchant bankers and other advisors who are responsible for such kind of manipulations as they first suggest high valuations to push their fees higher and then resort to such practices for the IPOs to sail through.

The fees of bankers and advisors are generally linked to the size of the public offers, which in turn are linked to the valuation of the shares being sold.

Sources said that the practice is similar to circular trading in secondary market, where demand is artificially pushed up through dummy sale and purchase of shares.

KINDLY ATENTION PLEASE "APPLICANT OF VASWANI(CHOR)IPO

PRAMOTERS AND OPERATORS OF VASWANI PUBIC ISSUE HAVE COLLECT THE DATA OFF ALLOTEES AND CAMPAGNING TO SAVE THE VASVANI ISSUE.THEY CAN CAMPAGNING AS BELLOW....
( 1 )...SHARE WILL NOT LIST (IF LISTING HAPPEN)BELLOW ISSUE PRISE...
( 2 )...YOUR MONEY WILL COME AFTER LONG TIME..
( 3 )...THEY CAN PRESSURE TO WRITE TO SEBI,TO LIST VASVANI
( 4 )..."DHAK DHMKI BHI DENGE"

AFTER ALL WE SHOULD BE UNAITED AND OPPOSS THEM.
"JO DAR GAYA VO MAR GAYA"

DEAR IPOFINDER & PRAKASHROH,
I AM 100% AGERR WITH YOU.

It seems Vaswani issue is withdrawn. Congrats for all those who joined the fight. Congrats Sreedhar and thanks to you for your effort.

People are spreading rumors that premium is 2 Rs or 3 Rs..currently there is no premium..it is around at 50 paise discount..

Operators and BRLM are doing their best to save the issue..SEBI has done his best to save us from these manipulators

It's time to prove us and SEBI correct by going for withdraw option and let the issue cancelled..

If this issue gets cancelled then no operator will try to do same thing in future with us..If it gets passed then every BRLM and operator will try to play this dirty game..choice is all yours..

dont forget that the GMP was -25 Rs discount after the allotment..SEBI has saved us from a very big losses..it's time to teach a lesson to these operators and BRLM...

dear(vasvani applicants)
kindly donot sale your vasvani shares in gray market.pramotar,and operators like to save this ipo.operater will get money from pramoter if vasvani will listed.other wise there dirty game will turn in punissment & loss.they have done there game by application in HNI portation.
SEBI IS INVESTIGATING IN IRREGURALITY,AND THEY WILL GIVE OPTION TO RETAIL INVESTOR.RETAIL INVESTOR WILL GET FULL MONEY .KEEP FAITH IN SEBI.
LOOKING TO PAST RECORD OF SEBI ,THEY HAVE ALWAYS GIVEN OPTION TO INVESTORS.& IN THIS VASVANI HAS BRICHED THE RULES ,SO WE WILL GET JUSTIFICATION FROM SEBI.
NOTE-IF ANY COMITMENT WITH GRAY MARKET ,IT WILL OPEN THE DOOR OF LISTING.

HELLO FRIENDS,(VASWANI IPO APPLICANT )
FIRST WE SHOULD BE THANKFUL TO CHITTORGRRH SITE BECAUSE THIS IS ONLY MEDIA TO COMMUNICATE WITH INVESTORS .

---->LOOK AT SEBI Order in the matter of Vaswani Industries Ltd.
Date Posted: 26th May 2011ON FRONT PAGE FOR VASWANI IPO.
"THANKS TO CHITTORGARH SITE FOR PROVIDING INFORMATION."

AS PER INFORMATION IN SEBI ORDER MONEY WILL COME WITHIN ONE MONTH.AFTER COMPLETION OF INVESTIGATION.

--->AND AS PER 2 CLOSS
Before permitting the security of the company to list, investors should be given an exit option so that the securities allotted to them in the IPO can be withdrawn; subsequently, a call on the investment in the company can be taken by the investors post listing of the same.

it is going to list on bse & nse or going to cancell the issue by sebi ? we dont know

What is the procedure to withdrawal application in Vaswani Industries?

DEAR GOEL BERIWALA JI,

YOU ARE ALWAYS RIGHT. KOI BHI IVESTOR AB APNI APPLICATION WITH DRAW NAHI KAR SAKTA HAI, KYUNKI APKE KAHNE KE ANUSAR SABHI NE APNE SHARES GREY MARKET ME SOLD KAR DIYE HAI,

I THINK KI AB COMPANY INVESTORS KE SATH DUSRA DHOKHA KAR RAHI HAI.

FIRST TO COMPANY NE GREY MARKET ME SAARE SHARE PURCHASE KAR LIYE HAI AND DUSRA KI AB JAB APPLICATION WITHDRAW KARNE WALI BAAT HAI TO AGAR KOI BHI INVESTOR APNI APPLICATION WITH DRAW KAREGA TO

FIR AAGE JAB LISTING KA TIME HOGA, TAB YEH 49 KI JAGAH PER KAM SE KAM RS. 60 PER LISTING KARWAYEGA.

SO I WANT TO SAY ANY INVESTORS. PLEASE DON'T WITH DRAW HIS / HER APPLICATION.

THANKS AGAIN, GOEL BERIWALA JIIII

Even if some of us has already sold the shares in GM, but still if we are united and withdraw the applications and somehow able to cancel the issue, all the GM trades got cancelled.

I suggest we all should go for withdrawal.

hai evervybody koi janta hai ki vaswani share ke paise kab tak ayenge please tell me.

Ab lagta hai ki jisne nahi becha apna share wil get good grey market price as the promoters & BRLM will definitely try to list the shares and they can go to any extent. Hope I am correct !!

Congrats everyone on Vaswani. Play safe in stock market because loosing money is very easy nowadays.

RAKESH AGGARWAL JI,

MY CONTACT NO. IS 09350560475

HAI EVERYBODY,

THE NEWS OF WITHDRAWAL OF APPLICATIONS IN VASWANI HAS COME VERY VERY

LATE. MAXIMUM INVESTORS HAVE SOLD THE SHARES AT A DISCOUNT IN GREY

MARKET. SO, THEY CAN NOT WITHDRAW THE APPLICATIONS BECAUSE I THINK

COMPANY ITSELF PURCHASED THESE SHARES.

BUT THOSE WHO HAVE THE SHARES IN THEIR HANDS, THEY HAVE THE REASON

TO CHEER. IF THE ISSUE IS CANCELLED THEN THE GREY MARKET TRANSACTIONS

WILL BE CANCELLED.

CONGRATULATIONS TO THOSE WHO HAVE NOT SOLD IN GREY MARKET. GOD BLESS

THEM

What is the procedure to withdrawal application in Vaswani Industries?

Congratulations to all those who have applied as their money is safe now. They should thank Sreedhar for the lead taken by him.
Though SEBI has taken action (after such a hue and cry), it should be ashamed of itself as it is such a state that people think they can do this and get away with it. One Vaswani has come to the fore. There were many in the past who have done it and there will be many in the future who will continue to do it in different degrees.
Shame on the Indian stock market.

The Securities and Exchange Board of India (SEBI) has halted the listing of securities of Vaswani Industries Ltd, whose initial public offering of shares had closed on May 3, saying subscriptions in the qualified institutional and high networth categories was "artificially inflated".

"Certain applications were submitted to artificially inflate the subscriptions in QIB and HNI category to attract and mislead the investors," the stock markets regulator said in a statement.

"Post the closure of the issue, the same applications are being withdrawn by way of stop payment, stop allotment, cheque return, wrong cheque dates, etc," it said.

Alleging that this was a "pre-planned move" amongst the promoters, lead managers and other operators, SEBI said the listing of securities of Vaswani should be stopped till an investigation of the withdrawal of applications is completed.

“Applications in the HNI category amounting to Rs 44.6 crore (which works out to about 90 per cent of the issue size) have been made on the opening day of the issue at the cap of the price band. All these applications have been withdrawn subsequently,” Sebi said in its order.

The regulator has also asked the banker to the issue, Ashika Capital, to place the amount in the public issue account in an interest earning account.

Pintu,
Ha Ha as usual predicted by IPOFINDER the shameless people have started playing games.If people have any ethics they should not even sell a single share.I bet GMP may even go to 5 & 10 also.Now is the time to put aside the dangling fruit of this GMP & decide to stop this menace.
How unscrupulous people in India have become ,once they see their issue collapsing they are luring people with this.Why did not they step in when people were desperate to sell their shares even at 15 rs discount.Did they not have the responsibility to step in to save the poor investor.Now Geedad ka mout aaya tho .....
In USA we have blockbuster IPOs which are increasing 50 to 100 percent after listing & In India we have Vaswani,PFC type harakiri.

Coming to money see how Indian cricketers like Tendulkar,Sehwag & Gambhir are being fleeced to play in the nautanki IPL putting aside the interest of the nation.What a shame BCCI.