Nirman Agri Genetics hits 5% lower circuit after SEBI bans IPO fund misuse

ByEnigma 808

Shares of Nirman Agri Genetics Limited (NAGL) dropped 5% on Wednesday after SEBI barred the company from accessing the securities market due to alleged misuse of IPO funds. SEBI’s interim order also halted corporate actions like a bonus issue, stock split, and the planned name change to ‘Agriicare Life Corp Limited’.

On October 15, the stock fell to Rs 166.85, with a market capitalization of Rs 133 crore. SEBI’s investigation revealed that nearly 93% of NAGL’s IPO proceeds, about Rs 18.89 crore, were diverted to suspicious or fake entities linked to the company’s promoter, Pranav Kailas Bagal.

The regulator found conflicting and unreliable information regarding the use of funds, with no valid documentation for payments to vendor entities. Some listed entities were found to be non-existent during inspections. SEBI has imposed restrictions on the company and its promoter until further investigation.

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    Besides writing and being a content creator, Enigma 808 sometimes likes to watch paint dry on walls, listening to ASMR while timing snails racing. Such is life.