[Update] Infrastructure Watchdog Moves SC Against SAT Decision On Smartworks IPO

SAT Dismisses Plea Seeking Stay On Smartworks IPO

SUMMARY

Days after the Securities Appellate Tribunal (SAT) dismissed its plea seeking a stay on Smartworks’ IPO, NGO Infrastructure Watchdog has moved the Supreme Court

Infrastructure Watchdog filed an appeal on July 8 against Smartworks, alleging that it was under an investigation by the Income Tax department, received funds from shell companies and some amounts through benami transactions, and more

After SAT dismissed the appeal, shares of Smartworks listed on the BSE and the NSE on July 17 at a premium of 7% to the issue price

Update | July 19, 12:40

Days after the Securities Appellate Tribunal (SAT) dismissed its plea seeking a stay on Smartworks’ IPO, NGO Infrastructure Watchdog has moved the Supreme Court.

In an exchange filing, the recently listed coworking space provider said that the NGO moved the apex court against the SAT order shortly after the decision was pronounced on July 16.

At SAT, Infrastructure Watchdog had sought an interim order asking to maintain the status quo on the IPO.

After SAT dismissed the appeal, shares of Smartworks listed on the BSE and the NSE on July 17 at a premium of 7% to the issue price. The company’s shares rose 5% from the listing price to end the week at INR 458.30 on the BSE.

Original | July 16, 15:58

The SAT has dismissed an appeal seeking a stay on the IPO of coworking space major Smartworks, whose shares are expected to list on the bourses tomorrow.

In the hearing today, SAT dismissed the appeal filed by NGO Infrastructure Watchdog against the coworking space provider, its promoters, SEBI, among others, due to lack of merit.

Yesterday, the Tribunal had directed both the parties to make their submissions by the end of day. The final order is yet to be released.

For context, Infrastructure Watchdog filed an appeal on July 8 against Smartworks, alleging that it was under an investigation by the Income Tax department, received funds from shell companies and some amounts through benami transactions, and more.

The appeal was filed on the grounds of alleged inaction by SEBI in relation to certain complaints filed by the NGO against Smartworks. Infrastructure Watchdog had urged SAT to direct SEBI to initiate investigation in the affairs of Smartworks, and restrain it from proceeding with the IPO till the completion of the investigation, and an interim order maintaining status quo on Smartworks’ public offering.

Smartworks had rubbished all the allegations. The company is yet to release an official statement on the case dismissal. Its IPO closed on Monday (July 14) with an oversubscription of 13.45X, receiving bids for 13.9 Cr shares as against 1.04 Cr shares on offer.