Mumbai, Oct 15: Shares of SME-listed Nirman Agri Genetics Limited (NAGL) hit the 5 per cent lower circuit on Wednesday, a day after the Securities and Exchange Board of India (SEBI) barred the company from accessing the securities market over alleged misuse of IPO funds.
In its interim order, SEBI directed the company to stop all proposed corporate actions, including a bonus issue, stock split, and its planned name change to ‘Agriicare Life Corp Limited’, until further notice.
On October 15, shares of Nirman Agri fell 5 per cent to Rs 166.85 apiece. The stock’s 52-week low stands at Rs 130, while its 52-week high is Rs 456. The company’s market capitalisation is around Rs 133 crore.
SEBI’s order, issued by Whole-Time Member Kamlesh Chandra Varshney, also restrained the company’s promoter, Pranav Kailas Bagal, from buying, selling, or dealing in NAGL shares -- directly or indirectly -- until further directions.
The market regulator’s investigation revealed that the company had diverted about Rs 18.89 crore, or nearly 93 per cent of its total IPO proceeds of Rs 20.30 crore.
The funds were allegedly transferred to entities that were either fake, suspicious, or controlled by Bagal and his relatives.
According to SEBI, NAGL submitted conflicting and unreliable information about the use of IPO funds and failed to provide credible evidence to support its claims.
The regulator noted that the company did not furnish valid agreements or invoices for payments made to four vendor entities, to whom it claimed to have paid Rs 12.14 crore.
The order further stated that some bank accounts where these payments were credited actually belonged to unrelated third parties.
During site inspections, the National Stock Exchange (NSE) found that the entities listed by NAGL were non-existent at the provided addresses, and no agricultural operations were taking place there.
SEBI concluded that the company’s actions raised serious concerns about fund diversion and false disclosures, and said the restrictions will remain in place until further investigation.
This report is from IANS news service. NewsGram holds no responsibility for its content.
(NS)
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