Investors of Revati group of companies have objected to relisting of shares of Revati Organics Ltd on the Bombay Stock Exchange (BSE) and have sought relook by the exchange authorities.
In a letter to the A N Joshi, executive director of BSE, the investors have stated that Manish Shah, the main promoter and director of the group companies comprising Revati Organics, Revati Fiscal Services and Midas Touch Dyes & Intermediaries is being investigated for issuing fake shares by the Economic Offences Wing (EOW), crime branch, CID, Mumbai.
BSE has stated that the shares of Revati Organics were suspended from trading since 1999 for non-compliance of clause 16 (prior intimation of book closure dates) of the listing agreement and because the company has completed all the required formalities, the suspension of trading has been revoked.
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However, the investors fear that given the past history and dealings of the concerned company officials it would be against the interest of the investing public.
Investors have pointed out in their letter that the Igatpuri plant of Revati Organics has been closed for last more than 5 years but the directors report is totally silent about it in the company's balance-sheet of 2000-2001. Moreover, the unit has been taken over by Maharashtra State Financial Corporation and has been also put up for sale.
The fight between the investors of Revati Organics and the management of the company began in 1995 when a group of investors were saddled with non-transferable shares of the company.
Even the BSE had backed the disgruntled investors then citing breach of clause 17 of the listing agreement which requires all non-transferable shares to be duly stamped and certified by the chartered accountant about its compliance.
The shares in question were privately placed in November 1993 prior to the public issue of the company in March 1994. However, post-issue, the shares became bad-delivery in the market and the group of investors were saddled with about 12,000 shares.
Later, the managing director of the company Manish Shah was arrested by the CID in 1997 for issuing counterfeit shares and currently the investigations are still on.