The Securities and Exchange Board of India (SEBI) has taken stringent action against Nirman Agri Genetics , an SME-listed company, by prohibiting it from accessing the securities market. This decision comes in the wake of allegations regarding the misuse of funds raised through the company's Initial Public Offering (IPO).

IPO Details and Fund Misuse Allegations

Nirman Agri Genetics raised Rs 20.30 crore through its IPO in March 2023, with First Overseas Capital Ltd. serving as the lead manager. However, SEBI's investigation has uncovered troubling findings:

Specific Allegations

SEBI's investigation revealed several concerning transactions:

1. Rs 6.75 crore allegedly diverted through multiple layers to promoter-linked entities.
2. Rs 12.14 crore claimed to be paid to four vendors with suspect credentials, without providing invoices.

Regulatory Actions

In response to these findings, SEBI has taken the following actions:

1. Banned Nirman Agri Genetics from accessing the securities market.
2. Halted all proposed corporate actions, including:
   • Bonus issues
   • Stock splits
   • Name change to Agriicare Life Corp Ltd.

Investigation Findings

SEBI's investigation yielded several red flags:

• NSE site visits confirmed that the entities receiving funds were non-existent at given addresses.
• No agricultural activities were found at the specified locations.

Changes in Shareholding Pattern

The investigation also highlighted significant changes in the company's shareholding structure:

Notably, the promoter, Pranav Kailas Bagal, sold 8.6 lakh shares, representing 10.71% of his holding, during September.

This case underscores the importance of regulatory oversight in protecting investor interests and maintaining the integrity of the securities market. It serves as a reminder for investors to exercise due diligence and for companies to adhere strictly to regulatory guidelines and ethical practices in fund utilization.

Nirman Agri Genetics , an agri-input company specializing in hybrid seeds, pesticides, and bio-organic products, has announced a significant board meeting scheduled for September 30, 2025. The meeting agenda includes considerations that could potentially reshape the company's stock structure and strategic direction.

Stock Split and Bonus Share Proposal

The board will deliberate on two key proposals:

1. A 1:10 stock split
2. A 1:10 bonus share issuance

The stock split, if approved, aims to make Nirman Agri Genetics' shares more accessible to a broader range of investors by reducing the price per share. This move is expected to enhance the stock's liquidity in the market.

Simultaneously, the proposed bonus share issuance of 1:10 is designed to reward the company's existing shareholders, effectively increasing their shareholding without additional cost.

Strategic Expansion into Sustainable Farming

In addition to the stock-related proposals, the board meeting will also discuss a strategic expansion into cutting-edge farming technologies. Specifically, the company is exploring opportunities in:

• Hydroponics
• Aquaponics

These sustainable agricultural methods are gaining traction globally, and Nirman Agri Genetics appears to be positioning itself to capitalize on the growing demand for environmentally friendly farming solutions.

Recent Stock Performance

On the day of the announcement, Nirman Agri Genetics' shares closed at Rs 172.45 on the National Stock Exchange (NSE), marking a 5% increase. The company currently has a market capitalization of Rs 138.13 crore.

While the stock has seen a significant decline of 59% over the past year, it has shown recent signs of recovery, gaining 19% in the last month.

Company Profile

Nirman Agri Genetics operates in the agricultural inputs sector, with a focus on:

• Hybrid seeds
• Pesticides
• Bio-organic products

The upcoming board meeting and its potential outcomes could play a crucial role in shaping the company's future trajectory in the competitive agri-input market.

Investors and market watchers will be keenly awaiting the results of the September 30 board meeting, which could have significant implications for both the company's stock structure and its strategic direction in sustainable farming technologies.