In a recent development, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 2 lakh on Sigma Solve , an AI and digital solutions provider, for violating regulations related to the use of its initial public offering (IPO) proceeds.

Violation of Sebi Rules

Sigma Solve, a smallcap company, has been found guilty of altering the designated use of funds raised through its IPO. The company reportedly transferred excess money for General Corporate Purposes, which is in contravention of Sebi's guidelines for the utilization of IPO proceeds.

IPO and Stock Performance

Sigma Solve made its market debut in October 2020. Since its listing, the company's stock has shown remarkable performance, delivering an impressive 971.00% return to its investors.

Regulatory Action

The regulatory action by Sebi underscores the importance of adherence to stipulated norms in the use of funds raised through public offerings. This move is likely aimed at ensuring transparency and protecting investor interests in the capital markets.

While the penalty amount of Rs 2.00 lakh may seem relatively small, it serves as a reminder to all listed companies about the strict compliance requirements set by the market regulator.

Impact on Investors

Despite the regulatory setback, it's worth noting that Sigma Solve's stock has been a significant outperformer since its IPO. However, investors should remain vigilant and consider both the company's financial performance and its adherence to regulatory standards in their investment decisions.

The incident highlights the need for companies to maintain strict compliance with regulatory guidelines, especially concerning the utilization of funds raised from the public.

Sigma Solve Limited has announced a significant corporate action that will impact its shareholding structure. The company has set October 6, 2025, as the record date for an upcoming stock split, aiming to enhance the liquidity of its shares and make them more accessible to a broader range of investors.

Stock Split Details

The board of directors of Sigma Solve Limited has approved a stock split in the ratio of 1:10. Under this arrangement:

• Each existing equity share with a face value of Rs. 10.00 will be subdivided into 10 equity shares.
• The new shares will have a face value of Rs. 1.00 each.

This move effectively increases the number of outstanding shares while proportionately decreasing the share price, without affecting the company's market capitalization.

Record Date and Eligibility

Sigma Solve Limited has officially communicated the following key information:

• Record Date: Monday, October 6, 2025
• Eligibility: Shareholders registered as of the record date will be eligible for the stock split.

The company has filed this information with both the National Stock Exchange of India Limited (NSE) and BSE Limited, in compliance with Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on Shareholders

Existing shareholders of Sigma Solve Limited should note that while the number of shares they own will increase tenfold, the overall value of their holding will remain unchanged immediately after the split. However, the increased number of shares at a lower price per share may potentially lead to improved liquidity in the stock.

Company Background

Sigma Solve Limited, headquartered in Ahmedabad, operates under the CIN: L72200GJ2010PLC060478. The company's shares are listed on both the NSE and BSE.

Investors and market participants are advised to take note of this corporate action and its potential implications on their portfolios. As always, it is recommended to consult with financial advisors for personalized advice regarding investment decisions.

The stock split is subject to necessary approvals and regulatory compliances. Shareholders and potential investors should keep an eye on further announcements from the company regarding the implementation of this stock split.