Thread by @BeatTheStreet10

This is the office of a company whose market cap used to be around 70,000-80,000 Cr

Stock corrected 90% - Classic Case of Pump and Dump by Promoters

The Pump and Dump Chart

Jack up share price to the moon, thanks to low liquidity of 1%

Promoters and closed ones acquired shares from open market and preferential issue

SEBI has summarised the Pump and Dump in 6 stages,

So how they did it?

Just before lock-in expiry, Revenue and PAT jumped by 6-7 times all of a sudden, thanks to consolidation of recently acquired entities

Delayed Disclosures

Registered office was sealed by the GST authorities since November 25, 2024, disclosed in Feb-25 after SEBI notice

DGCI Investigation disclosed a delay of 2 months despite the contingent liability of 22times of PAT

GST Investigation was subsumed by Positive narratives of QIP, international business acquisition, etc.

The company then aggressively floated the press release and media activity and at the same time promoters have silently started selling off markets

FDA Inspection - Conducted - Found Mfg Plant closed - Not Disclosed

SEBI found no EGM was ever conducted

Fake Offices, Fake Board Meeting and Fake Attendance

Company won 875 Cr order to supply tobacco products; it was found to be from the company operating in building materials

The Subsidiary Acquisition which led to sudden jump in. revenue was later reversed just after a quarter

Also anomalies were noted in the structure of the transaction

Company took 64 cr loan from Advik Capital and eventually diverted to a dubious supplier

This loan was never disclosed, accounted for nor its default was disclosed to exchanges

Inspect of Nasik Manufacturing unit revealed it did not have enough resources to the operations of levels of revenue disclosed in financial statements

Divergence between reported revenue figures and electricity consumption at the manufacturing facility. The revenue growth recorded in recent quarters was also not consistent with the decreasing trend in electricity consumption at the facility

Used buzzwords to navigate supply and lock-in expiry

Promoters made profit of INR 50 Cr by alleged price manipulation

Finally, SEBI took action