YES Bank IPO allotment scam: SEBI bans 13 investors from trading
Mumbai: SEBI has unearthed a large-scale multiple application scam in the recent YES Bank IPO. It has also banned 13 investors from trading in the bank's shares with immediate effect.

According to a SEBI interim order issued today these investors manipulated allotment of shares by opening more than 7,500 `benami' depository accounts and gained Rs1.7 crore through this manipulation on the first trading day of the IPO.

SEBI has referred the case to the Reserve Bank of India, and has asked for an investigation into the role of the Chennai-based Bharat Overseas Bank and Vijaya Bank in opening bank accounts of these benami entities and funding their IPO applications.

SEBI says an investor named Ms Roopalben Panchal had applied for 1,050 YES Bank shares and paid the application money of Rs47,250. However she did not receive any allotment. Later she received 150 shares each from 6,315 allottees through off-market transfer. Thus, she received 9, 47,250 shares in aggregate, which she sold through five other entities on the day of listing.

Another investor, Sugandh Estates and Investments also received a large number of shares by similar method of manipulation and gained about Rs32 lakh through opening 1,315 benami accounts.

Investigation by SEBI has found depository participant, Karvy-DP, which was used by these companies to open 7,630 benami dematerialised accounts (which served as a conduit for two entities) failing in the `know your client' norms in the issue.

SEBI has asked NSDL to undertake comprehensive inspection of Karvy-DP to check whether it has implemented the `know your client' norms that DPs are required to follow.

NSDL and Central Depository Services Ltd have been advised by SEBI to enhance their surveillance and devise and put in place systems and procedures for identifying multiple dematerialised accounts of suspicious nature.

The 13 entities and individuals barred from further dealings in YES Bank and future IPOs are Ms Roopalben Nareshbhai Panchal, Ms Devangi Dipakbhai Panchal, Seer Finlease (P) Ltd, Excell Multitech Ltd, Zenet Software Ltd, Tauras Infosys Ltd, Rajan Vasudev Dapki, Barghav Panchal (HUF), Jayantilal Jitmal, Sugandh Estates and Investments Pvt Ltd, Sujal Leasing, Ms Ritaben R. Thakkar, and Veenben Y. Thakkar.
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Kirloskars share in TKM cannot exceed 11 per cent
Bangalore: Toyota Motor Corporation and Kirloskars have renegotiated their original share buyback agreement as a result of which Kirloskars share in TKM now cannot exceed 11 per cent.

The Kirloskars earlier this week bought back 10 per cent equity in TKML from Toyota Motor Corporation at Rs18-Rs 22 per share, which amounts to around Rs125-135 crore. As per the original understanding with Toyota Motor Corporation, the Kirloskars could increase their stake to 26 per cent under a buyback arrangement.

The entire amount has been raised through internal accruals from other group companies. The equity capital of the joint venture is around Rs700 crore.
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Nagarjuna Construction prices GDR at $ 5.11
Hyderabad: Nagarjuna Construction Company (NCC) has put the price of its US$105mn (about Rs479-crore) global depository receipts (GDR) issue at US$5.11 per GDR (Rs233), each of which represents one equity share of the company of a face value of Rs2 per share.

The company said the GDRs would be traded on the Euro MTF Market of the Luxembourg Stock Exchange, the IOB platform of the London Stock Exchange and on Nasdaq's Portal market.

The GDR issue proceeds would be used primarily for investment in BOT (build, operate and transfer) and BOOT (build, own, operate and transfer) projects, and for other purposes as permitted under the applicable legislations/regulations and for general corporate purposes including the repayment of short-term debt and capital expenditure.

Merrill Lynch International and JP Morgan acted as joint lead managers and book runners to the offering. The company has granted a green-shoe option to the lead managers for up to 14.3 per cent of the issue size amounting to US$15mn.
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Torrent Pharma goes in for stock split, announces 1:1 bonus
Ahmedabad: Torrent Pharmaceuticals has announced a stock split under which each of its equity shares of Rs10 face value will be split into two shares of Rs5 each.

Torrent Pharma has also announced a 1:1 bonus for its shareholders as a result of which every shareholder will now be issued four shares of Rs5 value for every share of Rs10 value held by them.
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IL&FS Investsmart raises US$90mn through maiden GDR
Mumbai: Financial services firm IL&FS Investsmart has raised US$90mn through its maiden global depository receipts (GDR) on the Luxembourg Stock Exchange. The issue was priced at US$4.28 per GDR (Rs197), at a discount compared to the ruling domestic price, which closed at Rs215.45 on the BSE on Wednesday.

The company issued 2.10 crore GDRs representing around 32.43 per cent of the post offer equity capital of the company, according to an IL&FS Investsmart press release.

Citigroup Global Markets Ltd and CLSA Asia-Pacific Markets were the joint global coordinators and book-runners for the offering. eTrade, which held 11.14 per cent stake in IL&FS Investsmart, participated in the GDR offering to subscribe to a "significant amount," officials said.

Promoter IL&FS continues to be the largest stakeholder in the company at 46 per cent.
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