Austral Coke hits lower circuit as SEBI cracks whip
The metallurgical-coke maker's board was set to meet on Sep. 3 to consider raising up to $200 million through a share sale to institutional investors. The board was also to consider a bonus issue of shares.
By ET Bureau |
MUMBAI: Shares of Austral Coke hit the lower circuit limit Wednesday after market regulator SEBI barred the company from raising fresh capital after the income-tax department told the regulator the company had manipulated its financial accounts.
The metallurgical-coke maker's board was set to meet on Sep. 3 to consider raising up to $200 million through a share sale to institutional investors. The board was also to consider a bonus issue of shares.
SEBI said the income-tax department charged that Austral had misused money raised from its initial public offering. The regulator added it has ordered an investigation into the trading of the company's securities.
Rishi Raj Agarwal, managing director of Austral, however, denied allegations of misuse of IPO funds, according to media reports.
At 11:30 am, shares of Austral Coke were stuck at the lower circuit of Rs 48, down 4.95 per cent on the BSE.
The metallurgical-coke maker's board was set to meet on Sep. 3 to consider raising up to $200 million through a share sale to institutional investors. The board was also to consider a bonus issue of shares.
SEBI said the income-tax department charged that Austral had misused money raised from its initial public offering. The regulator added it has ordered an investigation into the trading of the company's securities.
Rishi Raj Agarwal, managing director of Austral, however, denied allegations of misuse of IPO funds, according to media reports.
At 11:30 am, shares of Austral Coke were stuck at the lower circuit of Rs 48, down 4.95 per cent on the BSE.
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