Nirman Agri Genetics

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.

Nirman Agri Genetics board will meet on September 30, 2025 to consider a 1:10 stock split and 1:10 bonus share proposal. The stock split aims to make shares more affordable and increase liquidity, while the bonus issue is intended to reward existing shareholders. The board will also discuss strategic expansion into hydroponics and aquaponics farming technologies to capitalize on demand for sustainable agricultural methods. The company's shares closed at Rs 172.45 on NSE, up 5% for the day. Nirman Agri Genetics is an agri-input company producing hybrid seeds, pesticides, and bio-organic products with a market capitalization of Rs 138.13 crore. The stock has declined 59% over the past year but gained 19% in the last month.

Nirman Agri Genetics has announced that the government has granted them a certificate of trademark. This trademark will enable the company to initiate their Krushidham project, which is likely a new agricultural initiative.