In calendar 1996 alone, as many as 377 finance and investment companies entered the primary market of which, 91 companies ie, 24 per cent were based in Calcutta. Unlike a majority of other finance companies located elsewhere, most of the Calcutta-based companies proposed to have a small equity of around Rs 3 crore. Obviously, the main objective of these companies was not growth or performance but to get their shares listed. It is amazing that of the 128 finance and investment companies that were proposed to be listed on CSE during the past three calendar years, as many as 19 are yet to be even traced till date! Of the public issues of calendar 1995,Vintage Securities is yet to find a place on the CSE's trading list even after 1,029 days!

Jaimatadi Finance remains quoteless for 939 days which is followed by Companion Securities (849 days) and Continental Fiscal (847 days). Of the 1996 issues, PSL Financial Services is missing from the CSE for 786 days which is followed by Superstar Leafin (755 days), International Power Finance (680 days), Shardaraj Tradefin (652 days), Ask Financial (632 days), JM Fiscal Services (624 days), Scintilla Commercial (594 days), Pontiac Leasing (566 days), Marda Commercial (564 days), Stenly Securities (535 days) and JMB Commercial (520 days).

From the issues of calendar 1997, Bacchhat Investment has failed to appear on the CSE even after 415 days which is followed by Premier Auto Finance (357 days), Winy Commercial (282 days) and Commitment Finance (211 days).

One more Calcutta company, Exim Finance (EFL), along with two Guwahati-based companies, Vindus Holdings (VHL) and GR Industries & Finance (GIFL), which werealso proposed to be listed on the CSE, were finally spotted on the CSE this week.

Incidentally, all the three issues were lead managed by Financial and Management Services Ltd of Calcutta! What's more, both the Guwahati companies VHL and GIFL were having a `care-of address' as their registered office in Guwahati. Whereas VHL's address was "C/o ML Sharma & Co", GIFL's was "C/o KC Jain & Co". Further, EFL, lead managed by the same merchant banker, was the single largest shareholder of VHL, and both EFL and VHL were the largest shareholders in GIFL! Both GIFL and VHL proposed to have a similar equity of Rs 3 crore of which the promoters were to hold 75 per cent in the former and 66.7 per cent in the latter. Another interesting aspect was that at the time of going public, EFL had a paid-up capital of Rs 1.20 crore which had been subscribed by a `promoter group' of 73 individuals and 8 closely-held/private companies, taking the total number of promoters to 81. GIFL's pre-issue equity of Rs 1.50 crore was held bya promoter group of 25 companies and 57 individuals which took the number of total promoters to 82.

Incorporated in December 1993, EFL went public on August 27, 1996 in order to expand its activities in leasing and inter-corporate lending besides getting into hire-purchase financing, bill discounting and share investment activities. EFL proposed to have a post-issue equity of Rs 3.10 crore of which, the promoters were to put in Rs 1.30 crore (42 per cent). Though EFL made a public issue of Rs 1.80 crore, the net offer to the public amounted to just Rs 85 lakh. EFL's issue closed on September 5, 1996. After more than one-and-a-half years, this scrip finally registered its maiden quote on April 22. The share opened at its face value of Rs 10 and closed at Rs 10.10 on the same day. The joy that the investors got after one-and-a-half years however was shortlived as the scrip, true to the trend, went into oblivion the very next day. EFL has now joined the long list of `listed but not traded' securities. The Rs 1crore net public offer of VHL, whose activities were also somewhat similar to EFL, opened on April 21, 1997 and closed on April 30, 1997. This issue, proposed to be listed on Calcutta and Guwahati, has finally got its maiden quote on the CSE on April 22 ie, after almost one year, or 357 days to be exact. Like EFL, VHL also opened at its face value, but closed 10 paise lower at Rs 9.90 on the same day. Once again, like EFL, VHL too has shied away from the market from the next day. Though the name is `Industries', GIFL, formerly known as Golden Roofings Ltd, is engaged mainly in financial activities which are similar to both EFL and VHL. GIFL's tiny public offer of Rs 75 lakh opened on June 25, 1997 and closed on July 4, 1997.

This scrip, after 293 days of the issue closing, has finally found a place in the CSE quotation list on April 23 with a maiden quote of Rs 10 (like both EFL and VHL). However, like VHL, on the same day it closed at Rs 9.90.

The similarity among the three scrips clearly indicates thateven the belated maiden quotes are only artificial, and are in no way going to help the investors.

(Arranged by Investar -- The Aarthik News & Research Syndicate)