Sebi ban over fund diversion drags Man Industries shares down 10%

Shares of Man Industries plunged over 10 per cent after Sebi barred the company and three top executives, including the chairman and MD, over alleged fund diversion

Shares of Man Industries fell over 10 per cent on Tuesday after the Securities and Exchange Board of India (Sebi) barred the pipe manufacturer and three of its top executives, including the chairman and managing director, over alleged fund diversion. The stock closed 10.24 per cent lower at Rs 365, valuing the company at Rs 2,738 crore.

 

In its order, Sebi said Man Industries failed to consolidate its subsidiary Merino Shelters in its financial statements between FY15 and FY21, misrepresented related-party transactions, and engaged in round-tripping of funds to conceal its true financial position.

 

Responding to the order, Man Industries termed the allegations “legacy matters” and clarified that they would not affect its current or future operations. The company also said it has already begun consolidating the financials of Merino Shelters from FY23 onwards. It added that it would pursue legal remedies against Sebi’s decision.