The Securities & Exchange Board of India suspended trading in the shares of Bharat Global Developers and barred the company’s promoters from accessing capital markets indefinitely in an interim order on Monday. A detailed investigation will follow and is expected to be completed by the end of this financial year.
Unlawful gains
The regulator has impounded alleged unlawful gains from sale of preferentially allotted shares and all the noticees have been directed to provide a full inventory of all their assets whether movable or immovable.
The regulatory action comes after social media posts and a complaint dated December 16 regarding suspicious financials and disclosures by the company whose scrip has jumped 105 times jump from ₹16.14 to ₹1,702 in the year ended November.
The change in management of the company initiated in December 2023 was followed by a fresh issue of shares resulting in allotment of 99.5 per cent of the company’s equity to a total of 41 preferential allottees. The preferential allotments were made in two tranches in April 2024 and August 2024. As many as 23 preferential allottees brought in more than half of the total authorised capital of the company.
The financial statements revealed that till FY23, the company had negligible revenue, expenses, fixed assets and cash flows. However, the financial results from quarter ended March 2024 showed a steep spike in revenues and expenses. This was accompanied by negligible fixed assets, negative cash flows from operating activities and huge amounts of trade receivables and payables.
From October 2024, the company started making disclosures to BSE relating to business expansions and several high-value orders secured from renowned companies. In November, the company proposed a bonus issue, stock split and interim dividend.
