Sebi bars Nirman Agri Genetics, promoter for alleged misuse of IPO funds

Market regulator Sebi on Tuesday restrained Nirman Agri Genetics (NAGL) and its promoter, Pranav Bagal, from accessing the securities market, halted the company’s corporate actions, and prohibited the promoter from dealing in shares until further notice.

 

In an interim order, Sebi cited discrepancies and significant inconsistencies in the disclosure and utilisation of IPO proceeds by NAGL, including contradictory submissions and a lack of supporting documents.

 

NAGL had raised ₹20.30 crore through its SME IPO in March 2023. Sebi found that ₹18.9 crore of the funds were diverted to entities that were either fictitious or linked to the promoter and his family members.

 

 

Sebi has called for a detailed investigation and given the company and promoter 21 days to file their objections or request a hearing.