SEBI suspends trade in shrs of Bharat Global, cites fraud, fabricated orders
This story was originally published at 14:18 IST on 23 December 2024
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MUMBAI – The Securities and Exchange Board of India Monday suspended trading in shares of Bharat Global Developers Ltd. till further orders after it found the company making fabricated announcements, as well as some irregularities in its financial statements between 2019-20 (Apr-Mar) and the September quarter of FY25. The company's revenue saw a sudden jump to INR 2.84 billion for the first half of the current financial year from INR 400,000 in FY23, the regulator said in its interim order. The sudden spike in revenue does not appear to be supported by any disclosure related to significant deals, it said.
Classified as a computer hardware and equipment company on the BSE website, the company says it is involved in the domains of green energy, engineering and infrastructure, aerospace and defence, and agriculture. SEBI said Bharat Global Developers disclosed orders from marquee companies, including Reliance Industries Ltd., Tata Agro & Consumer Products, McCain India Agro Pvt. Ltd., and UPL Agro Pvt. Ltd. Of these four, the last three don't even exist, SEBI said.
SEBI found the company's disclosures regarding high value contracts in November to be false because these had been denied by the respective counterparties to the contracts. The regulator has issued notices to 47 entities, including the company. As on Sept. 30, the company had 100% public shareholding. The company's total expenses shot up to INR 2.67 billion in Apr-Sept from nil in FY22 and FY23.
On Nov. 12, the company said it would consider interim dividend at its upcoming board meeting, but on Nov. 18, it said the funds would be used to support ongoing and future projects. The market regulator said such wrong disclosures and misinterpreted financials culminated in a sharp rise in the company's share price and the price rise was timed to benefit certain preferential allottees who offloaded shares and made large gains. The share price saw a steep jump of 105 times at INR 1,702.95 in November from INR 16.14 a year ago.
The regulator said a detailed investigation into the matter was likely to be completed by the end of this financial year. Separately, BSE Ltd. also informed about the suspension of trade in the stock. End
Reported by Aman Aryan
Edited by Avishek Dutta
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