SEBI Bans Nirman Agri Genetics From Securities Market Over 93% IPO Fund Diversion

SEBI has banned SME-listed Nirman Agri Genetics Ltd. from accessing the securities market following alleged diversion of IPO funds. The company raised Rs 20.30 crore through its IPO in March 2023 with First Overseas Capital Ltd. as lead manager. SEBI's investigation found the company mis-utilized approximately Rs 18.89 crore or 93% of IPO proceeds by transferring funds to entities that were either fictitious or controlled by promoter Pranav Kailas Bagal and his relatives. The regulator has also halted all proposed corporate actions including bonus issues, stock splits, and name change to Agriicare Life Corp Ltd. The investigation revealed that Nirman Agri diverted Rs 6.75 crore through multiple layers to promoter-linked entities and claimed to have paid Rs 12.14 crore to four vendors with suspect credentials without providing invoices. NSE site visits confirmed these entities were non-existent at given addresses with no agricultural activities found. The promoter group's shareholding has declined from 65.59% at listing to 44.33% as of September, with Bagal selling 8.6 lakh shares representing 10.71% of his holding during September.

Nirma: Massive Net Loss of Rs 2,623.01 Crore in Q2 FY2025

<p><span class='negative'>Nirma</span> reported a <span class='negative'>net loss</span> of <span class='negative'>Rs 2,623.01 crore</span> in Q2 FY2025, compared to a <span class='positive'>net profit</span> of Rs 123.18 crore in Q2 FY2024. <span class='neutral'>Sales</span> marginally <span class='negative'>declined</span> by 0.05% to Rs 1,742.26 crore. <b>Operating Profit Margin</b> <span class='positive'>improved</span> to 16.34% from 13.72% year-on-year.</p>