Key Points:
A ground report by Dainik Bhaskar revealed six companies that have recorded returns of upto 1300% had no working offices at their registered address.
In all these companies' promotor holdings reportedly decreased, while most of their shares are held by public.
All the companies did not respond to the media investigation. The market regulator SEBI only gave automated reply.
SHARES OF SIX Gujarat-based companies have surged as much as 1,300% in just one year when there is reportedly no business activity recorded from their registered addresses. A Dainik Bhaskar ground investigation has raised serious questions about the gap between the companies’ soaring share prices and their actual business operations.
When Bhaskar reporters visited the companies behind these massive returns, they found locked offices, abandoned factories, thorny bushes, and even a tiny photocopy shop listed as a corporate office. The investigation also found a common trend: promoters of these companies have been steadily reducing their stake while public shareholding has sharply increased.
The biggest surprise came from Saptak Chemicals, whose shares soar nearly 13 times in a year. According to Dainik Bhaskar, official records show the registered office of the company at Mohan Chamber near Dakor in Gujarat. But when Bhaskar reached the address, they found “Chamunda Xerox,” an 8x8-foot photocopy shop.
The shop owner told Dainik Bhaskar that the company had not operated from there for years and claimed government agencies, including officials from Delhi, had earlier visited the location for inquiries. Despite this, the same address continues to appear in official records. Meanwhile, promoters’ holding in the company has dropped to around just 12.5%.
Umiya Tubes, is another company that has a registered manufacturing plant in Sabarkantha district, giving returns of 175% over the last year. However, when reporters visited the site it was nowhere to be found. Instead of a factory there was only a jungle full of bushes and babul trees. The company's Gandhinagar office was also reportedly locked, with part of the premises rented out.
The company's promoters have reduced their stake from around 50% in September 2023 to just 4% in 2026, the rest 96% is liquidated among the public.
A similar story emerged at Sanginita Chemicals. Its Chhatral factory was reportedly found locked, and a security guard told reporters that production was stopped three months ago. At the registered office, a few employees were present but refused to answer questions from Dainik Bhaskar. When the media outlet contacted a senior official, over phone, he reportedly said, "Come after 10 days.” Meanwhile, the company has reported falling sales of 29.36% and promoter holdings have dropped to around 25%, yet its stock price continues to rise.
The Dainik Bhaskar investigation found more unusual conditions at AVI Polymers. Its Ahmedabad office was locked and reportedly covered in spider webs. Staff at another office told Bhaskar that the company had shut down long ago. However, the stock market tells a different story as its share has delivered more than 143% returns. Meanwhile promoters now hold barely 1% of the company.
At Kestora Agri Commodities, the ground report claims there was only a locked office with the name of a different company. Locals told Dainik Bhaskar that it rarely opens. The company's sales have also remained flat, but its stock price continues to rise. Promoter holding has fallen from around 26% to just 5%, with public investors now owning more than 94% of the company.
Among all the six companies, it was only Gurukrupa Gems, now renamed Bhakti Jewels, where business activity seemed normal. Employees were present and the office was operational. However, even here promoter holdings follow the same pattern. It has dropped sharply from around 40% to less than 10%, while quarterly profit has fallen by over 84%. Despite this setback the stock continues to deliver more than 200% returns.
According to market experts, promoters usually increase or maintain their stake when they are confident about a company's future. In these six companies, the opposite has happened. Promoters have steadily sold their holdings, leaving most shares with public investors.
Dainik Bhaskar also reports that most of these firms are micro-cap companies, where experts say share prices can be more easily influenced because of low trading volumes. Investors often get attracted after seeing returns of several hundred percent. By the time they enter, early investors or promoters may already be selling their shares at higher prices—a practice known as dumping.
Dainik Bhaskar reached out to all six companies seeking their response to the unusual movement in their shares. However, they report that there have been no replies for more than ten days. The media outlet also informed market regulator SEBI about the findings. The market regulator only responded with an automated email stating that such complaints can only be filed by shareholders of the concerned companies.
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