Latest news with #FOCL
The South African
26-05-2025
- Health
- The South African
Best Full Spectrum CBD Gummies for Pain, Inflammation & Stress Relief
While CBD products like oils and vapes have been in the limelight, full spectrum CBD gummies quietly deliver an entourage effect that's hard to forget and even harder to resist. These edibles contain not only CBD but also different beneficial terpenes that offer a range of benefits, including stress reduction, pain management, and better sleep cycles without the smoky aftertaste. Plus, they come in flavours that range from sweet and sour to downright exotic, so there's something for every palate. Let's check out some of the best full spectrum CBD gummies of 2025! FOCL – Buy potent full spectrum CBD gummies Cornbread Hemp – Best for USDA organic gummies Exhale Wellness – Best for vegan gummies FOCL Chill Out Gummies – Best overall Cornbread Hemp Watermelon CBD Gummies – Best for occasional discomfort Exhale Wellness CBD Gummy Cubes – Best for stress relief FAB CBD Delta 9 + CBD Gummies – Best for D9 + CBD gummies TREhouse Delta 9 THC Gummies with CBD – Best for experienced users Tommy Chong Cheech and Chong's Cruise Chews – Best for muscle pain Medterra Deep Sleep CBD Gummies – Best for sleep May melt away stress Promote focus and relaxation Gluten-free and non-GMO formula Third-party tested for purity Easy to consume FOCL Chill Out Gummies contain 3 mg THC, 50mg L-theanine, and 25mg CBD that'll help you relax at the end of a long day. If you're always stressed, you should try FOCL Chill Out Gummies. These full-spectrum gems interact with your body's endocannabinoid system to help calm you when everything seems overwhelming. They're perfect for those moments when stress is high and patience is low, gently lifting your mood when you're feeling down. With the added L-theanine, a naturally occurring amino acid in green tea leaves, these CBD gummies help alter your brainwaves, ultimately improving cognition, anxiety, and sleep quality. These FOCL Chill Out Gummies boast a tangy sour raspberry flavour that pleasantly lingers for a while but doesn't leave a weird aftertaste. One jar containing 30 gummies will cost you $59. Grab a 3-pack for $141.60 – that's 20% off the regular price. You can purchase these Chill Out Gummies from FOCL. This brand has an impressive collection of CBD gummies, including Deep Sleep, Feed Good, and Daily Calm gummies, which can fix everything from your sleep quality to your random mood swings. These CBD products are not only tasty but also vegan-friendly and gluten-free. Plus, the brand offers 20% off upon subscription and free shipping over $40. >>Check the best prices for FOCL Chill Out Gummies May alleviate minor pain and discomfort May boost your mood Moderate THC content USDA organic CBD Free from harmful allergens Each gummy comes loaded with 25 mg USDA organic hemp plant CBD and a subtle 1mg THC, making it perfect for a mild yet effective experience. These full-spectrum gummies are perfect for alleviating general aches and pain, whether from overdoing it at the gym, endless hours at the desk, or just an old backache. Users also report that these gummies leave them in a surprisingly good mood, making them a great pick-me-up for anyone feeling grumpier than usual. These gummies have a naturally refreshing watermelon taste. The little sugar dusting adds a nice texture, making them hard to resist. The price depends on the strength. A 750 mg bottle costs $49.99, while 1500 mg goes for $74.99. If you need something a bit more potent, 3000 mg is available for $124.99. Cornbread Hemp is your go-to source for buying Watermelon CBD Gummies. This brand uses USDA organic Kentucky-grown hemp flowers for their gummies, which have a moderate THC content. They offer fast and discreet shipping. Even if you don't get the desired results, you can take advantage of its 30-day money-back guarantee. >>Check the best prices for Cornbread Hemp Watermelon CBD Gummies Super potent full-spectrum formula (up to 3000mg) Made with tropical natural flavours like guava & kiwi Vegan, cruelty-free, and gelatin-free No artificial colours, flavours, or preservatives Lab-tested and Farm Bill compliant If you're searching for a clean, plant-powered alternative that doesn't skimp on strength, Exhale Wellness CBD Gummy Cubes are a top contender. These colourful, cube-shaped treats offer serious relief in a vegan, cruelty-free format made for conscious consumers who demand both quality and results. Each gummy delivers a tropical burst of flavours, think guava, kiwi, and other island-inspired notes, that make your daily dose of wellness feel more like a treat than a chore. With potencies available in 750mg, 1500mg, and a hefty 3000mg option, there's a strength for every need, from casual stress relief to deeper, targeted support for things like sleep, tension, and mood swings. Crafted with 100% natural ingredients and zero artificial colours or flavours, these CBD gummies are full-spectrum, meaning they contain the complete range of cannabinoids and terpenes, including a small, legal amount of Delta-9 THC for enhanced therapeutic synergy. The result? A more effective, entourage-based experience without synthetic fillers. Lab-tested for purity and potency, Exhale Wellness's CBD Gummy Cubes are shipped in single, 2-pack, or 3-pack bundles, with subscription options that knock up to 30% off the regular price. A 750mg jar costs $84.95, but subscribers pay just $63.71. Customer feedback has been glowing, with verified buyer Joseph Wilson noting improved sleep and blood pressure management thanks to the potent plant-based formulation. You can get these gummies on Exhale Wellness with free shipping on all orders $80+. >>Check the best prices for Exhale Wellness Vegan CBD Gummy Cubes May elevate mind and body May uplift your mood Vegan-friendly formula 2018 Farm Bill compliant Free from harmful toxins and pesticides With 5mg of Delta-9 THC and 2.5mg of CBD, these full-spectrum hemp extract gummies give you a pretty balanced high without being overwhelming. While FAB CBD Delta 9 Gummies offer various wellness benefits, they are a reliable option for those battling mild pain and tense situations. They're formulated to help take the edge off and mitigate anxiety, making stressful scenarios more manageable. When it's time to unwind, these gummies promote relaxation that eases you into a restful sleep. FAB CBD Delta 9 Gummies are available in assorted sour flavours, packing a punchy sour twist followed by a satisfying sweetness. These CBD gummies cost $52. With Sezzle, you can split the cost into 4 interest-free payments of $13. Get your Delta 9 Gummies from FAB CBD, where you can also find an impressive variety of other CBD products like drink mixes, creams, and tinctures. Their CBD is farmed in Colorado and is completely pesticide-free. Plus, you'll enjoy free shipping on orders above $99. >>Check the best prices for FAB CBD Delta 9 Gummies May induce euphoria May increase energy levels Balanced head and body buzz Vegan and gluten-free Adjustable serving size If you're on a mission to feel good and get the giggles, TREhouse Delta 9 THC Gummies will get you sorted. With each gummy packing a 10mg punch of both Delta 9 THC and CBD, these gummies will take you on a wild ride without leaving you completely zoned out. With TREHouse, the number of gummies you take can radically change your experience. One will calm your nerves, while two might fill you with a noticeable dose of energy and euphoria. These CBD gummies will deliver munchies, so having snacks like a sandwich, Doritos, or M&Ms on hand might be a good idea. TREHouse Delta 9 THC Gummies with CBD come in peach pear flavor, which is sweet with a slightly tangy aftertaste. Clocking in at $34.99, these 20 piece full spectrum CBD gummies are quite budget-friendly and high-quality. You can get a 40 gummy pack for just $64.99. If you want to get seriously baked, TREhouse is your go-to source. Besides CBD edibles, the brand offers magic mushroom products, THC syrups and vapes to get your fix without having to deal with the whole 'open a window' situation. Each product is guaranteed to make you feel giggly and give you the munchies. And the best part? TREhouse makes sure everything is vegan, gluten-free, and sanctioned by ISO-certified third-party labs. Plus, they throw in a 60-day guarantee, so if you're not completely satisfied, just send your product back for a refund. >>Check the best prices for TREHouse Delta 9 THC Gummies with CBD Mild and mellow effects May relieve muscle pain Support a happy mood Balanced THC and CBD ratio for enhanced experience Free from synthetic chemicals Formulated with the perfect ratio of 10:1 CBD to THC, these full-spectrum edibles have 30 mg CBD and 3 mg THC. These gummies are free from synthetic chemicals and artificial preservatives, so you'll be getting pure CBD goodness. Tommy Chong Cheech and Chong's Cruise Chews offer a natural way to tackle various day-to-day issues. They can help relieve muscle tension and ease stiff joints, calm your nerves during anxious situations, and support a healthy mood. Plus, the combination also boasts antioxidant properties, keeping both your body and mind in good shape without any uncomfortable side effects. These Cruise Chews offer a fun mix of natural flavours, including cherry, orange, lemon, apple, and pineapple, delivering a candy-like experience. Originally priced at $69.95, these gummies are now down to $59, helping you cruise through the day without booking an expensive trip. You can buy Cheech and Chong's Cruise Chews from Tommy Chong's official website. The brand has been featured in various reputable publications including Forbes, CNN, Newsweek, and High Time that speaks volume about its legendary status and quality. The brand ships its CBD products discreetly to your doorstep so no more awkward runs to the store or explaining your purchases to nosy neighbours. Did we mention the brand accepts various payment methods? Now that's super convenient! >>Check the best prices for Tommy Chong Cheech and Chong's Cruise Chews May improve sleep quality May help calm racing thoughts Personalized dosage Stomach-friendly ingredients Comes with Certificate of Analysis These full spectrum CBD edibles contain 25mg CBD, 2mg THC, and 3mg melatonin to help you sleep faster and longer. Whether you're dealing with insomnia, restless nights, or difficulty staying asleep, these gummies can calm racing thoughts and promote relaxation, so you can achieve a deeper, more restful sleep. Available in Mixed Berry flavour, these CBD gummies offer a rich, sweet-tart taste that's irresistible. Medterra's Deep Sleep CBD Gummies cost $39.99 for a jar of 20. If you buy more, you save more – purchase two packs to save 15%, or go for three packs for 25% off. Get your Deep Sleep CBD Gummies directly from Medterra! This brand offers everything from isolate CBD to broad-spectrum CBD and even non-THC products for those who want the chill without getting high. If you're new and feeling lost, they even have a handy quiz to point you in the right direction. >>Check the best prices for Medterra Deep Sleep CBD Gummies Full-spectrum CBD is a type of cannabidiol product that contains a wide range of naturally occurring compounds found in the cannabis plant, including cannabinoids, terpenes, flavonoids, and trace amounts of THC (less than 0.3% in most legal formulations). These compounds work together synergistically to enhance the therapeutic effects of CBD, a phenomenon known as the entourage effect. Unlike CBD isolate, which contains only pure cannabidiol, CBD offers a more holistic approach to wellness, making it a popular choice for those seeking comprehensive benefits. The process of creating high-quality CBD involves several crucial steps, from sourcing raw materials to ensuring the final product meets rigorous quality standards. Here's how it's made: The first step in making CBD is extracting cannabinoids and other beneficial compounds from the cannabis plant. There are several extraction methods used, but CO₂ extraction is one of the most common and effective techniques. This method uses pressurised carbon dioxide to pull cannabinoids, terpenes, and flavonoids from the plant material without leaving harmful residues. Other methods, like ethanol extraction or lipid-based extraction, are also used but may vary in efficiency and purity. The quality of CBD starts with the cultivation of the hemp plant. Reputable manufacturers source their hemp from farms that use organic, pesticide-free, and sustainable growing practices. These farms typically focus on cultivating hemp strains rich in CBD and other beneficial compounds while maintaining low THC levels to comply with legal requirements. After extraction, the raw CBD oil undergoes purification to remove unwanted substances such as plant waxes, chlorophyll, and impurities. This step ensures that the final product retains all the beneficial compounds while achieving the desired potency and consistency. Full-spectrum CBD retains trace amounts of THC to enhance its effects, but these levels are kept well within legal limits. High-quality CBD products are subject to rigorous quality control measures. Independent laboratories test the product for cannabinoid content, terpene profile, and the presence of contaminants like heavy metals, pesticides, and residual solvents. Each batch is tested to ensure consistency and potency, giving you confidence in the product's reliability. Reputable manufacturers adhere to standards set by organisations like the U.S. Hemp Authority or GMP (Good Manufacturing Practices) to ensure the highest quality. >>Check the best prices for FOCL Chill Out Gummies CBD gummies are a versatile option for individuals seeking natural wellness support. Thanks to their blend of cannabinoids, terpenes, and trace THC, these gummies can cater to a wide range of needs. Here's who can benefit the most: If you struggle with persistent pain, CBD gummies may offer relief by reducing inflammation and soothing discomfort [1]. The combination of CBD and other cannabinoids works synergistically to address pain at its source, making these gummies a natural alternative to traditional pain medications. For those dealing with anxiety or daily stress, full-spectrum CBD gummies provide a calming effect that promotes relaxation and mental clarity [2]. The presence of terpenes and other compounds enhances CBD's ability to balance mood and reduce feelings of tension, helping you navigate your day with greater ease. CBD gummies can be an excellent solution for individuals struggling with sleep issues [2]. By promoting relaxation and addressing underlying causes like anxiety or pain, these gummies help you fall asleep faster and stay asleep longer, resulting in more restorative rest. Even if you're not managing specific health concerns, CBD gummies are a great addition to a wellness routine. Their blend of cannabinoids and terpenes supports overall balance in the body, contributing to improved focus, reduced stress, and a better sense of well-being. With so many options on the market, selecting the right CBD gummies can feel overwhelming. By focusing on key factors, you can make an informed decision that suits your needs. Quality should be your top priority. Look for gummies made with organic tapioca syrup and organically grown hemp to ensure the product is free from harmful pesticides and chemicals. High-quality products are also manufactured using clean extraction methods like CO₂ extraction, which preserves the beneficial compounds without introducing contaminants. Always read the product label carefully. Check for clear information on the CBD content per gummy, as well as the presence of other cannabinoids like CBG or CBN. Avoid products with unnecessary additives, citric acid, artificial colours, or high levels of organic cane sugar. Look for gummies with additional wellness ingredients like melatonin for sleep or turmeric for inflammation. Third-party testing is essential for verifying the quality and safety of CBD gummies. Reputable brands provide Certificates of Analysis (COAs) from independent labs, confirming the product's cannabinoid profile, potency, and purity. Ensure the COA matches the product and is easily accessible online or upon request. While price is an important consideration, it shouldn't come at the cost of quality. Compare products based on their CBD content and additional benefits. Bulk discounts, subscription plans, or free shipping offers can help you maximise value without compromising on quality. While CBD gummies are generally safe and well-tolerated, they may cause mild side effects in some individuals, especially when taken in high doses or if you're new to CBD. Here are some potential side effects to consider: CBD may affect appetite, causing it to either increase or decrease depending on the individual. These changes can lead to fluctuations in weight over time. If you notice significant shifts in your appetite or weight, consider adjusting your dosage or consulting with a healthcare provider. Some users may experience nausea or an upset stomach, particularly when taking CBD gummies on an empty stomach or in larger doses. To minimise the risk of nausea, start with a low dose and take the gummies with food or water. CBD contains trace amounts of THC and other cannabinoids, which may interact with certain medications. For example, CBD can affect the liver's ability to metabolise drugs, potentially altering their effectiveness or causing unwanted side effects. If you're on prescription medications, consult your healthcare provider before using CBD gummies to ensure there are no adverse interactions. Although rare, allergic reactions to CBD or other ingredients in gummies (such as flavourings, gelatin, or sweeteners) can occur. Symptoms may include itching, rash, or swelling. If you suspect an allergic reaction, discontinue use immediately and seek a healthcare professional. CBD contains all the naturally occurring compounds in the hemp plant, including trace amounts of THC, which can enhance the entourage effect for potentially stronger benefits. Broad-spectrum CBD removes THC while retaining other cannabinoids and terpenes, making it ideal for those who want to avoid THC entirely. The most effective form of CBD depends on your desired outcomes and how quickly you want to feel the effects. Tinctures and oils are absorbed quickly when taken sublingually, offering faster relief. Gummies and capsules are great for consistent, long-lasting effects and convenient dosing. Vape products are best for immediate effects, while topicals are designed for localised pain or skin issues. Broad-spectrum CBD is often used for its wide range of benefits, such as pain relief, anxiety reduction, and sleep support, without the inclusion of THC. CBD is legal in many areas, including the United States, as long as the THC content remains below 0.3%, in accordance with the 2018 Farm Bill. However, laws may vary by country or state, so it's important to check local regulations before purchasing or using CBD. CBD gummies do not make you high. While they contain trace amounts of THC, the levels are too low to cause any psychoactive effects. CBD gummies are great for addressing stress, anxiety, and sleep issues by promoting relaxation and a sense of calm. They are also effective for managing pain and inflammation, offering relief from chronic discomfort. With CBD gummies, you can experience a unique combination of calming and soothing effects. Some of these products also offer mood enhancement and a mild sense of euphoria. Earlier, we reviewed six exceptional products, and among them, the FOCL Good Night Sleep Gummies stood out for its incredible flavour, organic formula, and overall customer satisfaction. This product has earned the top spot due to its delightful taste and high-quality ingredients. Make sure you use these edibles responsibly, adhering strictly to the dosage guidelines provided by the manufacturers to ensure a safe experience. Have a good one! Atalay S, Jarocka-Karpowicz I, Skrzydlewska E. Antioxidative and Anti-Inflammatory Properties of Cannabidiol. Antioxidants (Basel). 2019 Dec 25;9(1):21. doi: 10.3390/antiox9010021. PMID: 31881765; PMCID: PMC7023045. Shannon S, Lewis N, Lee H, Hughes S. Cannabidiol in Anxiety and Sleep: A Large Case Series. Perm J. 2019;23:18-041. doi: 10.7812/TPP/18-041. PMID: 30624194; PMCID: PMC6326553.
Mint
08-05-2025
- Business
- Mint
Sebi's crackdown on Synoptics signals rising scrutiny of IPO gatekeepers
The market regulator's rare order barring First Overseas Capital Ltd (FOCL) from taking on any new initial public offer (IPO) assignments after uncovering alleged fund diversion from an IPO may signal increased scrutiny of merchant bankers to shore up investor trust, according to experts. The interim order, issued on 6 May by the Securities and Exchange Board of India (Sebi), uncovered a diversion of ₹ 19 crore from the proceeds of Synoptics Technologies Ltd.'s July 2023 IPO. It details how FOCL allegedly siphoned funds through fake counterparties, misclassified as expenses, and partially used to buy the company's own shares on listing day, creating an illusion of market demand. Sebi's order sent a clear message about accountability, investor protection and thorough disclosure practices, said Tarun Singh, founder & managing director at Highbrow Securities. 'This is especially pertinent for SME IPOs, where information gaps can be more pronounced and retail investors may be more vulnerable to inadequate disclosures.' Sebi's action served a reminder that merchant bankers cannot view SME listings as an area where standards can be relaxed, even if deal sizes are smaller, he said. It may lead to more thorough vetting processes and potentially longer timelines for some offerings, Singh said, adding the alternative–a loss of investor confidence due to problematic listings–would be far more damaging to market development. 'The SME segment's progress has been built on gradually earned credibility; maintaining this trust is essential for its continued growth', he said. While regulatory officials confirmed this is the first known case where Sebi has proactively barred a merchant banker across all new IPO mandates, legal experts pointed to earlier instances of similar action. Ravi Prakash, associate partner at Corporate Professionals & Advocates, cited Sebi's orders against Axis Capital in 2024 for offering redemption guarantees in debt issues and against Corporate Capital Ventures in 2019 for due diligence failures. However, he said, the FOCL order stood out due to the scale of premature fund diversion and misclassification of expenses. 'The nature of the misconduct—facilitating the siphoning of ₹ 19 crore against a disclosed expense of only ₹ 80 lakh—represents a significant breach of market integrity and reinforces Sebi's regulatory posture on the misuse of investor funds,' Prakash said. The ₹ 54 crore IPO of Synoptics, a Mumbai-based IT services firm, included ₹ 35 crore via fresh issue. But ₹ 19 crore was transferred from the IPO escrow account on 12 July 2023—a day before listing—in violation of the escrow agreement that permitted such transfers only after listing approvals. FOCL instructed the bank to treat the transfer as 'issue-related expenses', despite Synoptics having disclosed only ₹ 80 lakh under that head in its prospectus. Sebi's investigation later found that the funds were routed to three entities—CN IT Solutions, ABS Tech Services, and Dev Solutions—which were not found at the listed addresses and had no known business relationship with the company. The regulator has barred Synoptics and its three promoters—Jatin Shah, Jagmohan Shah, and Janvi Shah—from accessing the securities market until further notice. FOCL has also been barred from taking up any new merchant banking assignments. Further, Sebi directed issuers of ongoing IPOs being handled by FOCL to appoint an independent monitoring agency even if the issue size is below the ₹ 100 crore threshold. Sebi's order also stated that it would examine 20 SME IPOs managed by FOCL between May 2022 and April 2025 to assess whether similar practices were adopted. Experts said the order sends a strong signal about Sebi's expectations from IPO intermediaries. 'Barring a lead manager from all new IPO mandates is a significant and arguably unprecedented step,' said S Ravi, former chairman of BSE Ltd and founder of audit firm Ravi Rajan & Co. 'It demonstrates Sebi's willingness to take strong action against intermediaries who fail in their gatekeeping duties.' S. Ravi added that the directive to examine FOCL's other mandates could have deeper implications. 'It makes us wonder if FOCL did this in other IPOs they managed. If so, it shows that the rules for SME IPOs might not be strong enough,' he said. He also noted that tighter rules for IPO fund tracking and merchant banker accountability may now be imminent. The timing of the fund transfers—before listing approval—also flagged possible regulatory gaps. 'This incident indicates that existing mechanisms might not be sufficient to prevent misuse, especially in cases of possible collusion,' S Ravi said. He suggested a risk-based regulatory approach that balances investor protection with ease of capital access for SMEs. Ketan Mukhija, senior partner at Burgeon Law, said the order could recalibrate compliance expectations across the board. 'Sebi's move to scrutinize all 20 IPOs managed by FOCL over three years signals a shift—holding merchant bankers accountable not just for pre-issue compliance but for post-issue fund utilization.' Legal experts said the conduct outlined in the order could trigger broader regulatory consequences. 'These provisions address deceptive practices, misstatements, and schemes to defraud investors,' said Prakash. 'If established in final proceedings, it could attract further regulatory sanctions and reinforce liability for facilitating fraudulent misutilization of public issue proceeds.'
Economic Times
07-05-2025
- Business
- Economic Times
An SME busted for fund misuse puts 20 more IPOs managed by the same lead manager under scanner
Capital markets regulator Sebi has widened its investigation into the misuse of IPO funds in the SME segment, following its action against Synoptics Technologies and its lead manager First Overseas Capital (FOCL). In its order, the regulator has barred Synoptics Tech and its promoters from the securities market for siphoning off IPO funds. ADVERTISEMENT In the same order, Sebi mentioned that it will review 20 other SME IPOs managed by FOCL, checking for similar irregularities. Sebi's investigation into Synoptics revealed that funds raised through the IPO were not used for the stated business purposes. Instead, the money was diverted through multiple accounts to entities with no clear business activities. The lead manager, FOCL, was found responsible for failing to ensure that the funds were properly used, raising questions about its role in the regulator's move to expand the probe to 20 other IPOs where FOCL acted as lead manager suggests larger governance issues plaguing the SME is now examining whether a similar pattern of fund diversion, inflated expenses, or questionable end-use of IPO proceeds was repeated across these listings. ADVERTISEMENT SME IPO market has seen a wave of crackdown from the regulators as the promise of high returns and rapid listing gains has often attracted strong retail participation. One of the key changes in the recent past was the introduction of a profitability requirement, where SMEs must have a minimum operating profit of Rs 1 crore in at least two of the last three financial years to qualify for an move is aimed at ensuring that only companies with a proven track record of profitability can access public funds. ADVERTISEMENT To curb excessive selling pressure from promoters, Sebi also capped the Offer for Sale (OFS) component in SME IPOs at 20% of the total issue size. Additionally, selling shareholders are restricted from offloading more than 50% of their holdings during the Sebi continues its investigation into the 20 FOCL-managed IPOs, the outcome could further shape the regulatory landscape for SME public issues in India. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Indian Express
07-05-2025
- Business
- Indian Express
IPO fund diversion: Why SEBI banned Synoptics Technologies, promoters from markets
The Securities and Exchange Board of India (SEBI), in an interim order, has restrained Mumbai-based Synoptics Technologies Ltd (STL), a small and medium-sized (SME) information technology products and solution provider company, from trading in securities market for diversion and misutilisation of funds raised through initial public offering (IPO). Taking stern action on First Overseas Capital Ltd (FOCL), the merchant banker to the IPO, the regulator barred it from undertaking any fresh IPO-related assignments. How much money did STL raise through its IPO? STL came out with a Rs 54.04 crore IPO and got listed on the SME Platform of NSE Ltd on July 13, 2023. The IPO was a fixed-priced issue priced at Rs 237 per share. Of the Rs 54.04 crore, Rs 35.08 crore was raised through a fresh issue of shares and the remaining Rs 18.96 crore was through an offer for sale of shares made by two promoters — Jatin Shah, also the company's managing director, and Jagmohan Manilal Shah. As per the disclosures made in the red herring prospectus (RHP) filed by STL, issue-related expenses amounted to Rs 80 lakh, of which Rs 50 lakh was to be paid from the proceeds of the fresh issue, while the remaining Rs 30 lakh was to be met by the selling shareholders under the offer for sale. Net of these expenses, STL was projected to receive Rs 34.58 crore from the public issue, to be utilised for repayment of borrowings (Rs 5 crore), working capital (Rs 17.58 crore), investment in strategic acquisition/ joint venture (Rs 5.3 crore) and general corporate purpose (Rs 6.7 crore). Misutilisation of IPO proceeds The issue proceeds from STL's IPO were deposited into an escrow account maintained with Fort Branch, Mumbai, of HDFC Bank, the banker to the issue, on July 12, 2023. In its investigation, SEBI found that Rs 19 crore from the issue proceeds was transferred out of the escrow account on July 12, 2023 — a day prior to the listing of the shares of the company and the grant of trading approval. The funds were transferred to ABS Tech Service (Rs 7 crore), CN IT Solutions (Rs 6 crore) and to Dev Solutions (Rs 6 crore) on an instruction issued by FOCL to HDFC Bank. FOCL said the payments pertained to 'amounts due from the company as issue management fees, underwriting and selling commissions, registrar fees, and other IPO related expenses'. SEBI said that the amount actually transferred was more than 23 times the disclosed figure (Rs 80 lakh), raising concerns about the nature, basis, and legitimacy of these payments. When the regulator sought an explanation from STL on this transfer of funds, the company informed that the payments were not related to issue expenses and were instead for working capital (payment made to Dev Solutions) and strategic investment/joint venture objects (payment made to CN IT Solution and ABS Tech Services), as disclosed in the RHP. The order said that as on the date of filing the RHP (June 22, 2023), STL disclosed that the target entities for the proposed strategic investment had not yet been identified. However, within 20 days of the RHP filing — and on the very day the IPO proceeds were credited to the issue account — funds earmarked for strategic investment and general corporate purposes were transferred to CN IT Solution and ABS Tech Services toward the object of strategic acquisition. The agreements with CN IT Solutions and ABS Tech Services were executed on July 11, 2023 — a day prior to the credit of IPO proceeds to the escrow account maintained with HDFC Bank. Both agreements listed the same address for CN IT Solutions and ABS Tech Services. However, during a site visit conducted by NSE, it was found that neither of the entities was present/located at the stated address. With respect to the Rs 6 crore transferred to Dev Solutions — classified by STL as utilisation towards working capital — SEBI said the company failed to provide any reasonable justification for divergence in classification. A site visit to the address of Dev Solutions revealed that no such business existed at the stated location, raising serious concerns about the nature and authenticity of the payments made. On scrutinising the bank statements of the accounts to which funds were directed to be transferred by FOCL, SEBI found that these bank accounts were not held by the entities to whom FOCL had directed the transfers and with whom STL had purportedly entered into agreements. SEBI's interim order The markets regulator said that the facts brought out during the examination reveal a 'well laid out plan of the Company (STL) and the Lead Manager, FOCL, to siphon away funds raised in the IPO'. 'It, therefore, becomes necessary to restrain the promoters of the Company (STL) from alienating or encumbering their shareholding during the pendency of proceedings,' it said. SEBI, in the order, barred Synoptics Technologies Ltd, and its three promoters — Jatin Shah, Jagmohan Manilal Shah and Janvi Jatin Shah — from 'buying, selling or dealing in the securities market or associating themselves with the securities market, either directly or indirectly'. The regulator also prohibited First Overseas Capital Ltd from taking up any new assignment relating to merchant banking activities in the securities market till further directions. 'Findings, taken together, lead to a strong prima facie conclusion that FOCL, acting in concert with the company (STL), siphoned off a substantial portion of the issue proceeds,' the interim order said.
Indian Express
06-05-2025
- Business
- Indian Express
SEBI bars Synoptics Technologies, promoters for siphoning off IPO funds
The Securities and Exchange Board of India (SEBI) on Tuesday barred Mumbai-based Synoptics Technologies Ltd (STL) and its promoters from trading in securities market for siphoning away funds raised through the initial public offering (IPO). The regulator has prohibited First Overseas Capital Ltd, which acted as the lead manager to the IPO of STL, from taking up any new assignment relating to merchant banking activities in the securities market till further directions. 'The facts brought out during the examination reveal a well laid out plan of the Company and the Lead Manager, FOCL, to siphon away funds raised in the IPO,' SEBI said in the interim order. STL came out with a Rs 54.04 crore IPO and got listed on the SME Platform of NSE Ltd on July 13, 2023. Of the Rs 54.04 crore, Rs 35.08 crore was raised through a fresh issue of shares and the remaining Rs 18.96 crore was through an offer for sale of shares made by two promoters – Jatin Shah, also the company's Managing Director, and Jagmohan Manilal Shah. As per the disclosures made in the Red Herring Prospectus (RHP) filed by STL, issue-related expenses amounted to Rs 80 lakh, of which Rs 50 lakh was to be paid from the proceeds of the fresh issue, while the remaining Rs 30 lakh was to be met by the selling shareholders under the offer for sale. Net of these expenses, STL was projected to receive Rs 34.58 crore from the public issue, to be utilized for repayment of borrowings (Rs 5 crore), working capital (Rs 17.58 crore), investment in strategic acquisition/ joint venture (Rs 5.3 crore) and general corporate purpose (Rs 6.7 crore). In its investigation, SEBI found that Rs 19 crore from the issue proceeds was transferred out of the escrow account on July 12, 2023 – a day prior to the listing of the shares of the company and the grant of trading approval. These transfers were effected based on an instruction issued by FOCL to HDFC Bank on July 12, 2023, for release of issue-related expenses. The order said that the amount transferred ostensibly for meeting issue related expenses —Rs 19 crore—was grossly disproportionate to the Rs 80 lakh disclosed as issue expenses in the RHP, and accounted for more than 54 per cent of the total proceeds raised by Synoptics through the fresh issue of shares and 35 per cent of the total issue size. 'The actions of FOCL in giving instructions for the transfers to HDFC Bank, Fort Branch, Mumbai, are shocking and stunning at the same time,' the order said. When asked for a clarification, STL said the payments were not related to issue expenses and were instead for working capital (payment made to Dev Solutions) and strategic investment/joint venture objects (payment made to CN IT Solution and ABS Tech Services). STL had disclosed that the target entities for the proposed strategic investment had not yet been identified. However, within 20 days of the RHP filing—and on the very day the IPO proceeds were credited to the issue account—funds earmarked for strategic investment and general corporate purposes were transferred to CN IT Solutions and ABS Tech Services toward the object of strategic acquisition. SEBI said during a site visit conducted by NSE, it was found that neither of the entities was present/located at the stated address. In respect of Rs 6 crore transferred to Dev Solutions, a site visit by NSE revealed that no such business existed at the stated location.
