SEBI confirms ₹19 crore diverted from Synoptics IPO escrow account

This order confirms interim directions issued by SEBI regarding irregularities in the IPO of Synoptics Technologies Limited, specifically concerning the diversion of funds from the escrow account to unrelated entities and misrepresentation of the nature of these transactions.

Who it concerns: Synoptics Technologies Limited, First Overseas Capital Limited (FOCL), Jatin Shah, Jagmohan Manilal Shah, and Janvi Jatin Shah

What SEBI found or ordered

• SEBI restrained Synoptics Technologies Limited and its promoters (Jatin Shah, Jagmohan Manilal Shah, Janvi Jatin Shah) from buying, selling, or dealing in the securities market until further orders.
• SEBI directed First Overseas Capital Limited (FOCL) not to take up any new merchant banking assignments until further directions.
• SEBI found that INR 19 Crore was transferred from the IPO escrow account on July 12, 2023, one day before listing, contrary to the Escrow Agreement which required listing approval first.
• SEBI observed that the transferred amount was more than 23 times the disclosed issue-related expenses of INR 80 Lakh.
• SEBI found that bank accounts provided by FOCL for the transfers were actually held by different entities (Sachiel Exim Pvt. Ltd., Transpaacific Shipping and Resourcing Pvt. Ltd., and Dev Trading) rather than the named recipients (Dev Solutions, ABS Tech Services, CN IT Solutions).
• SEBI noted that agreements with the purported recipients were executed on July 11, 2023, the day before funds were credited, and site visits revealed no business existed at the stated addresses.

Also in the document

• The order is a 'Confirmatory Order' confirming the interim directions issued on May 06, 2025.
• SEBI noted that the examination of the fund trail from the actual account holders is still ongoing.
• The IPO raised INR 54.04 Crore, with INR 19 Crore diverted shortly after the funds were credited to the escrow account.