The Investors’ Grievances Forum (IGF) has complained to the stock exchanges and market regulator Securities and Exchange Board of India (Sebi) against the swap ratio in the merger of unlisted Lok Shelters Ltd (LSL) with Lok Housing & Construction Ltd (LHCL), a leading real estate company which is listed on the the Bombay Stock Exchange (BSE).According to the Forum, the 2:19 swap ratio (two shares of LSL for every 19 shares of LHCL) is heavily loaded in favour of the promoters of the Lok group. “The swap ratio is feared to be totally biased in favour of the promoters and against the small investors. It is proposed to merge LSL, which has a net worth of a mere Rs 2.02 crore with LHCL, which has a net worth of more than Rs 125 crore. Further LSL has no reserves, fixed assets or earnings at all. LSL has only one project in hand and no land bank at all,” the IGF said in its complaint to the Bombay Stock Exchange (BSE) and Sebi.
