Home / Business and Economy / SEBI Halts Nirman Agri Genetics IPO Fund Diversion Probe
SEBI Halts Nirman Agri Genetics IPO Fund Diversion Probe
10 Aug
Summary
- SEBI confirmed interim restrictions on Nirman Agri and its promoter.
- Allegations involve diversion of 93% of IPO proceeds through suspect entities.
- Corporate actions like bonus issue and stock split are halted.
Securities and Exchange Board of India (SEBI) has confirmed its interim directions against Nirman Agri Genetics Ltd and its promoter, Pranav Kailas Bagal. These measures were initiated after an examination into the utilization of the company's Initial Public Offering (IPO) proceeds.
SEBI's findings indicated a potential diversion of about 93% of the IPO funds. The alleged diversion was reportedly carried out through conflicting vendor profiles, non-existent entities, and layered structures, ultimately benefiting the promoter group. The regulator rejected requests to lift these curbs, noting a lack of evidence for fund repatriation and validation of fund transfers.
As a result, Nirman Agri Genetics remains restricted from securities market access until further notice. The company is also prohibited from proceeding with corporate actions, including its proposed bonus issue and stock split. Promoter Pranav Kailas Bagal is similarly restricted from dealing in the company's shares. SEBI maintained these measures to protect market integrity and public shareholders during the ongoing investigation.
