Vaswani Group of Industries

INTRODUCTION
Vaswani Group of Industries is one of the reputed group of Chhattisgarh. Vaswani Group has a chain of value-added products which include Induction Furnance, Sponge Iron, Steel ingot/billet,Power, Rolling Mill, TMT Bars. The company firmly believes in benchmark product quality, customer centric approach, people focus, ethical business practices and good corporate citizenship. Over the last two decades the company has continuously diversified its product portfolio to include many customized value added products.

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The Initial Public Offer of Vaswani Industries Ltd on April 29, 2011 and closed on May 03, 2011. The company made an offer of 10,000,000 equity shares in a price band of Rs. 49/-. Ashika Capital Ltd. was Lead Manager. on the date of issue company had received for 800,040 shares from Qualified Institutional Buyers 16,935,240 shares from Non-Institutional Investor s and 23,887,440 shares from Retail Individual Investors .the total share for 41.6cr The issue price was fixed at Rs. 49 and the listing permission was yet to be granted by the stock exchanges mean time SEBI was received of about 100 of complaints on 13th 2011 for investor pointing out large scale withdraws rejection in the issue

 QIB &HNI category to attract and mislead the investors so that some application are being withdrawn by way of stop payment stop allotment cheque return, wrong cheque dates, etc. The above is a pre-planned move amongst the Promoters of the issuer company Registrar and the other operators so that stopped till an investigation of the withdrawal of applications is completed No of complaints received SEBI so vide email date may 23th 2011 advised BSE&NSE of India Ltd with handling the listing of security further instruction. SEBI advised BSE and NSE to wish hold the list securities until future instruction banker to the issue was also advised that not to make access the issue proceeds and keep it in public issue account until SEBIs further instruction.

The following observation appear pertinent

3813 applications have been withdrawn in the issue. 666 applications amounting to a total of Rs. 31.32 Cr belongs to cash Amongst the remaining 3147 applications, 2785 applications have been on account of Cheque Return amounting to a total of Rs. 101 Cr. The issue proceeds in the public issues account, if no listing permission is grated the money is to be repaid from the date of refusal with in 70 days from the date of bid with a interest rate ofb15% of annum.

SEBI has made the following direction

A detailed investigation shall be initiated in the matter. Vaswani Industries Ltd. its Promoters, Directors and the intermediaries connected with the issue are directed to fully co-operate in the a foresaid investigation. The investigation shall be expeditiously completed within a period of thirty days from the date of this Order, so that a decision on the listing application by the stock exchanges can be taken within the statutory time limit provided under the Companies Act. In the meantime, the Bankers to the Issue shall place the amount in the public issue account in an interest earning account