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Sebi penalises 10 firms for diverting IPO proceeds in Birla Pacific case
Capital markets regulator Sebi has imposed penalties totalling Rs 3.42 crore on 10 entities, including Birla Pacific Medspa and Yashovardhan Birla, for violating listing agreements as well as diverting proceeds from the initial public offer of Birla Pacific Medspa Ltd.
The regulator imposed a fine of Rs 1.07 crore on Birla Pacific Medspa Ltd, Rs 32 lakh on Abhijit Desai, Rs 26 lakh on PVR Murthy and Rs 25 lakh each on Yashovardhan Birla, Venkateshwaralu Nelabhotla, Mohandas Adige, Anoj Menon, Rajesh Shah, Upkar Singh Kohli and Tushar Dey.
The order came after Sebi conducted an investigation into the initial public offer of Birla Pacific Medspa Ltd (BPML) for the period July 7-15, 2011.
The scrip of BPML was listed on BSE on July 7, 2011, after the IPO was open for subscription from June 20-23, 2011.
The price of the scrip had seen sharp volatility on the listing day, closing at Rs 25.35, 154 per cent more than the issue price of Rs 10 per share, Sebi said in an order on September .