ndsharma's blog

Dilip Buildcon reduces IPO size

Posted on: February 14, 2016

All’s not well, it seems, with Dilip Buildcon, the infrastructure firm of Dilip Suryavanshi. It had to slash the size of fresh issue of shares from the original one it had submitted to the Securities Exchange Board of India (SEBI). It has once again approached SEBI to raise funds aggregating up to Rs 430 crore through an initial public offer (IPO) for various corporate requirements including ‘repayment of loans’.

In March last year the company had filed draft papers with SEBI for raising Rs 630 crore through IPO. What made the company withdraw the offer and resubmit it in a reduced size is not clear. According to market talk, the income-tax and Enforcement Directorate (ED) cases might be haunting Suryavanshi and his firm.

The Income Tax Department had raided the establishments of Suryavanshi and his associate Sudhir Sharma spread over various cities in 2012. Several trunks full of documents seized by the I-T party from the establishments of Suryavanshi reportedly contained official note sheets pertaining to the transfers of senior bureaucrats and files of sensitive construction projects. This, though, had not come as a surprise to those who had been keeping a watch on the functioning of the BJP government and the enigmatic relationship between chief minister Shivraj Singh Chouhan and Suryavanshi.

The I-T officers had also reportedly seized documents showing that Suryavanshi had received around Rs 140 crore from a foreign country. The matter was then handed over to Enforcement Directorate (ED) as it pertained to violation of foreign exchange regulation laws.

‘Mail Today’, a New Delhi newspaper, later quoted a senior ED official as saying that the case of Dilip Buildcon would be investigated ‘regarding the violations of the Prevention of Money Laundering Act (PMLA)’. The official added, according to the daily, ‘The firm (Dilip Buildcon) has received the money from a firm based in South Africa’.

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Value of propaganda

Adolf Hitler believed in the use of propaganda as an integral element to seizing and holding on to political power. His maxim was 'the bigger the lie, the more easily it will be believed, provided it is repeated vigorously and often enough'. (Sean Murphy in his book 'Letting the Side Down')

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