The Securities and Exchange Board of India has withheld the listing of sponge iron producer Vaswani Industries initial public offer (IPO) after it received complaints regarding irregularities in subscription.
Following the closure of the public issue of Vaswani Industries on May 3, SEBI received complaints from investors regarding irregularities in the subscriptions, the regulator said in a press release issued late on Wednesday.
“Based on the data received from the exchanges or registrars regarding the subscriptions or withdrawals and preliminary inquiries into the matter, SEBI has advised the stock exchanges to withhold the listing of securities until further instructions,” it said.
The regulator said inquiries into the matter are in progress. Based on the findings, appropriate action would be taken.
The IPO of Vaswani Industries, which opened on April 29, 2011, was subscribed by four times on the final day of the issue. The company sold 1 crore shares at a price band of Rs 45-49 each.
It was proposed that the IPO proceeds would be utilised for pre-payment of term loans, coupled with working capital requirements, among others.
Vaswani Industries is engaged in the integrated business of manufacturing sponge iron, steel billets and ingots and power generation.