The Bombay Stock Exchange (BSE) has issued a warning to investors regarding trading in Spright Agro Ltd shares, urging caution against online tips circulating on platforms like Telegram and WhatsApp. This comes in the wake of an ongoing investigation by the Securities and Exchange Board of India (SEBI) into alleged regulatory violations by the company.

SEBI Investigation

SEBI conducted searches at Spright Agro's premises and is investigating potential violations related to:

• Preferential allotments
• Share splits
• Bonus issues
• Rights offerings
• Suspicious trading activities

The investigation covers the period from August 2023 to April 2025, during which the company executed multiple corporate actions.

Corporate Actions Under Scrutiny

Spright Agro Ltd has undertaken several corporate actions that have drawn regulatory attention:

1. March 2024: 1:10 stock split and 1:1 bonus issue
2. November 2024: Another 1:1 bonus issue
3. June 2024: Rights issue raising Rs 44.87 crore at Rs 13.40 per share

Suspicious Trading Activity

The SEBI investigation is focusing on potentially suspicious trading activities, including:

• 16 out of 35 original preferential allottees selling their rights for a combined profit of Rs 29.56 crore during the June 2024 rights issue.
• A significant improvement in the company's financial performance, with quarterly net profit increasing from below Rs 51.00 lakh to above Rs 5.50 crore starting November 2023.

Upcoming Corporate Action

Despite the ongoing regulatory scrutiny, Spright Agro has announced plans to consider a 10:1 bonus share issue at an upcoming board meeting.

Investor Caution Advised

The BSE's warning serves as a reminder for investors to exercise caution and conduct thorough due diligence before making investment decisions, especially when faced with unsolicited stock tips from unofficial sources.

As the SEBI investigation unfolds, investors are advised to stay informed about any official communications from the regulatory authorities and the company regarding the ongoing probe and its potential implications.

Spright Agro , an Ahmedabad-based agricultural company, has announced plans for a significant corporate action amidst an ongoing investigation by the Securities and Exchange Board of India (SEBI). The company's board is set to meet on September 18 to consider issuing 10 bonus shares for every one share held and a 100% dividend payout.

Proposed Corporate Actions

The company is considering the issuance of bonus equity shares in a ratio of 10:1, subject to shareholder and other requisite approvals. This move would be facilitated by capitalizing free reserves and/or securities premium, as per Regulation 42 of SEBI LODR. Additionally, the board will deliberate on recommending a dividend of up to 100% on the equity share capital for the current financial year.

SEBI Investigation

While these corporate actions are being proposed, SEBI is currently investigating Spright Agro for possible violations related to preferential allotments, share splits, bonus issues, rights offerings, and suspicious trading activities between August 2023 and April 2025. The regulatory body is examining the company's rapid capital expansion, which has seen its paid-up capital grow almost 40 times within a year, from over 50 crore shares to over 107 crore shares.

Financial Performance

Despite the ongoing investigation, Spright Agro has reported strong financial results for the first quarter:

The company's quarterly net profit has seen a significant jump from below Rs 51 lakh to above Rs 5.5 crore starting November 2023, which is also under SEBI's scrutiny.

Business Operations

Spright Agro has reported completion of agro commodity supply orders worth Rs 299 crore with various entities:

• Rs 102 crore order executed for Abhaynath Tradelink Pvt Ltd
• Rs 97 crore for Saize Enterprise Pvt Ltd
• Rs 100 crore for Laxam Commtrade Pvt Ltd

Strategic Expansion

The company is also evaluating a strategic entry into AgriTech-related businesses. This may include in-house builds, strategic alliances, technology licensing, and/or subsidiary/SPV formation. Areas under consideration include:

• Precision Agriculture & Farm Automation
• Unmanned Aerial Systems (UAS/Drones)
• Digital Market Infrastructure
• Post-Harvest & Supply-Chain Tech
• Farmer Services & Data Platforms
• Controlled-Environment & Inputs

Mr. Akshaykumar Patel, Managing Director of Spright Agro Ltd, stated, "Company has been actively strengthening its financial base to support growth and operational needs. As we move forward, we remain committed to sustaining this growth momentum with a continued emphasis on innovation and strengthening our leadership position in the market."

As these developments unfold, investors and market watchers will be keenly observing how the proposed corporate actions and expansion plans align with the ongoing SEBI investigation and the company's future trajectory in the agricultural sector.