Rasoya Proteins hit a lower circuit limit of 20% at Rs 12 on BSE after the market regulator barred the company, its four directors and five other entities from the capital markets for alleged fraudulent activities.
Meanwhile, the BSE Sensex rose 157.96 points, or 0.60%, to 26,626.32.
On BSE, 46,000 shares were traded in the counter, compared with an average volume of 27.29 lakh shares in the past one quarter.
The stock opened with a downward gap, falling by the maximum 20% daily circuit and remained locked at the 20% level at Rs 12 during the day, which is also 52-week low for the counter.
The stock hit a record high of Rs 20.80 on 23 September 2014.
The stock had underperformed the market over the past one month till 25 September 2014, falling 13.04% compared with 0.12% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 10.98% as against Sensex's 4.56% rise.
The small-cap company has an equity capital of Rs 170.89 crore. Face value per share is Re 1.
The Securities and Exchange Board of India (Sebi) on 24 September 2014 barred Rasoya Protein, its four directors and five other entities from the capital markets for alleged fraudulent activities with respect to the company's Global Depository Receipts (GDR) issue.
The interim order was passed after a preliminary probe by Sebi found the involvement of these entities in market manipulation.
Rasoya Protein and its four directors -- Prashant Duchakke, Anil Lonkar, Sameer Damle and Ajay K Singh -- were found to have colluded with Arun Panchariya, India Focus Cardinal Fund (owned by him), Pan Asia Advisors, Vintage FZE and its director Mukesh Chauradiya.
The case relates to perpetrating fraudulent plan with regard to GDR subscription, creation of underlying shares using the facade of GDR issue and monetisation of those securities through share sale.
Besides, Sebi probe revealed that the entities were also trying to induce and allure Indian investors to deal in the company's shares.
GDR is a financial instrument used by companies to raise capital overseas.
Rasoya Proteins clarified during trading hours today, 26 September 2014, that the Sebi order is "Ad-Interim Ex-Parte order. Hence the company is seeking legal advice to challenge the order as it does not agree with the said order.
Net profit of Rasoya Proteins rose 97.30% to Rs 11.68 crore on 29.22% rise in net sales to Rs 228.08 crore in Q1 June 2014 over Q1 June 2013.
Rasoya Proteins is one of India's leading soyabean processor. Its core concentration is on soya based products. The company deals with a varied range of soya products in domestic and international markets.
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