Vaswani Industries Limited

About the company

Operations Iron & Steel since past two decades, power generation

Issue Details
Issue Open: Apr 29, 2011 - May 03, 2011 Issue Type: 100% Book Built Issue IPO Issue Size: 10,000,000 Equity Shares of Rs. 10 Issue Size: Rs. 45.00 - 49.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 45 - Rs. 49 Per Equity Share Market Lot: 120 Shares Minimum Order Quantity: 120 Shares Listing At: BSE, NSE

Error
The issue price was fixed at Rs 49, and the securities issued through the IPO were allotted to investors on may 10,2011. However, the listing and trading permission was yet to be granted by the stock exchanges. SEBI on MAY 13, 2011 received large withdrawal/ rejections complaints from investors.

Action by SEBI
On May 26, 2011 SEBI released the first order for stopping of listing of VIL in stock exchanges.

Reaction from investors

The issue, through which the company was aiming to raise up to Rs 49 crore, was initially subscribed over 4 times. But after the close of bidding, several investors withdrew their applications, leading to a final subscription level of just 1.3 times.

Further action by SEBI

On July 11, 2011 SEBI released further continuum order about withdrawal option which asks the company for repayment.

Conclusion
On July 22, 2011, SAT stays with SEBI order against listing of Vaswani Ind Ltd.