Money Matters invests Rs445 cr QIP proceeds in bank deposit

Money Matters invests Rs445 cr QIP proceeds in bank deposit

Mumbai: Money Matters Financial Services, whose top officials have been arrested by the CBI in the housing finance racket,on Monday said it has invested proceeds from last month’s share sale in bank fixed deposits which would not be withdrawn without the board’s approval.

Besides, the company said it would meet operational requirements through a committee set up by the board.

Money Matters said its board met on Saturday to take stock of the situation arising out of the arrest of the company’s CMD Rajesh Sharma and CFO Suresh Gattani on charges of bribery.

Last month, the company raised Rs445 crore by selling shares to qualified institutional investors (QIPs). It sold over 71 lakh shares, at Rs625 a piece, to a clutch of investors, including some from overseas.

“After deliberations, the board resolved that no amount from the said fixed deposits be withdrawn or managed in any manner without prior approval of the board," the company said in a statement to the Bombay Stock Exchange (BSE) .

Further, the board has also constituted a committee for the interim period to make available the payment of salaries to staff and other day to day expenses.

A chartered accountant by profession, Sharma, was the key man behind the meteoric rise of Money Matters Financial Services. He was the promoter-chairman of the company.

The company’s shares had touched an all time high of Rs787 on 29 October, 2010. The scrip has been hitting the lower limit for four days since the involvement of the top officials came into light. The scrip closed 10% lower at Rs344.30 today.

Last week, CBI arrested eight officials from several banks and financial institutions on charges of bribery, in return for sanctioning loans.