GDRs worth USD 30 mn floated, cash rotated again
Picture for representational purpose
Hyderabad: The Enforcement Directorate has launched a probe against city-based Transgene Biotek regarding allegations of manipulation of shares by floating Global Depository Receipts.
It has been alleged that the company floated GDRs worth 30 million dollars and rotated the same money several times to buy GDRs. ED sources said the agency is suspecting the involvement of Mumbai-based agents and thinks that New York and Hyderabad are the epicenters of the alleged irregularities.
ED officials say Transgene used the structured GDR route to create equity shares without real net cash flow. “After making several announcements to increase the share price of Transgene some investors exit the company by offloading shares,” said a ED source. ED will be serving notice on the company.
Earlier, a group of shareholders of the company had complained to the Securities and Exchange Board of India about the irregularities. ED is also probing Transgene Bioteck Hong Kong and other subsidiary entities.
Repeated attempts to contact Transgene CMD Dr Koteswara Rao failed. The company refused to comment on the issue.
( Source : dc correspondent )
Next Story
