BusinessMarket Fraud Allegations of startup, investment banker ran away with money raised...

Market Fraud Allegations of startup, investment banker ran away with money raised from IPO

A unique case related to stock market fraud has come to light, a startup listed on BSE has accused its investment banker of embezzlement of money raised from IPO.

A unique case of fraud has come to the fore in the stock market., a start-up listed on the Bombay Stock Exchange (BSE), has been accused of diverting most of the money raised from the IPO by appointing an investment banker for its initial public offering (IPO)., in a notice sent to BSE on April 13, alleged that GYR Capital Advisors (formerly Alpha Numero Services) misappropriated a substantial part of the money raised through the IPO.

Headquartered in Jaipur, is a new age digital start-up that provides city to city rental car rental services.

The company launched its IPO in August 2020 and raised Rs 4.54 crore through it. “We have taken action against them for embezzlement of IPO money,” said. has access to Fastrack Finsec (Former Director Alpha Numero Director), Fastrack Directors – Abhishek Vijay Kumar Sharma and Rohit Parikh, Alpha Numero Director Mohit (Securities and Exchange Board of India Director in FastSecond Track and Exchange Board of India). in this regard). Byte. Three more have been mentioned.

What’s the whole Issue?

In 2020, Fast Track Finsec approached the founders of – Sahil Agarwal and Sagar Agarwal and gave them an idea for an IPO. Fast Track Finsec is registered with SEBI as a Type-1 Commercial Banker.

Fast Track promised to help both founders raise money from the market so they could use it to grow their businesses.

So far, both the founders have been investing money to grow the business on their own, either by borrowing money or by taking money from friends and family as investments.

Both the founders did not have much understanding of the rules of the stock market at that time. However, he wanted quick advice and started his IPO with them.

At the time of the IPO, the company said it would use the proceeds of the release to start new ventures, reduce debt and other public institutional purposes.

However, suffered a major setback when it took a closer look at ICICI Bank, the publisher of the publication.

According to, investment bankers forced the founders to invest around Rs 4 crore in designated companies through strategic investments or unsecured loans. said, “Respondent No. 1 (Abhishek Sharma) if we do not accept the new and arbitrary arrangement of Respondent No. 1 and Respondent No. 3 which will be a complete contract between the Company. 3 (Abhishek Sharma) Said. It will break and fail before the IPO starts.”

Read Also | TOP 10 IPO These are the 10 largest IPOs in India said its founders had promised to repay their lenders and told employees about the IPO, forcing them to accept these arbitrary terms under “commercial pressure.” fell.

In addition, Fast Track promised Finsec’s founders that they would pay due attention to the companies they recommended investing in and would pay TrackingTodays “with reasonable interest to invest in these companies”. And the company is not going to suffer any loss in this whole arrangement.”

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