Wipe out! Sebi-hit SME superstar stock is now down 88% from peak in just 8 months
Varanium Cloud, entangled in Sebi's scrutiny, experienced a drastic decline in its valuation from its peak in October last year. The stock, which hit a 52-week high of 239.5 in October 2023, plummeted to Rs 29.3 in the latest trade, marking a staggering 87% decline.
Shares of , caught in 's crossfire, saw its wealth nearly wiped out from the peak in October last year. The stock scaled a 52-week high of 239.5 in October 2023 and crashed all the way down to Rs 29.3 in the latest trade, falling as much as 87%.The company made its debut at the bourses in September 2022 and became a favorite among investors, thanks to its . Just four months after the listing, the shares jumped to Rs 1,602 as against an offer price of Rs 122.
However, as concerns surfaced over manipulation in financials and misuse of net proceeds, the slide was rapid. The company had denied all the allegations from time to time.
A week ago, Sebi found that the company allegedly misused its IPO proceeds and used dubious transactions to paint a false picture of good financial health and promising growth prospects to the general public.
The regulator, which initiated the probe after news items and social media posts raised concerns regarding the company's financial statements and corporate announcements, banned Varanium Cloud and its promoter Harshawardhan Hanmant Sabale from the capital markets with immediate effect.
According to the order, promoter Harshawardhan Hanmant Sabale through public announcements, created a that induced a large number of retail investors into purchasing the stock.
In its effort to present such a picture, Varanium and its promoter entered into transactions that appeared only on paper and nothing was happening on the ground as claimed by the company.
Further, Hanmant Sabale is restrained from acting as a Director or Key Managerial Personnel of any listed company or its subsidiary or any company which intends to raise money from the public or any Sebi registered intermediary, until further orders.
Formerly known as , Varanium Cloud claims to deliver cutting-edge digital, technology and internet services in tier two cities.
The company's platform is said to enable a positive effect on education, economic growth and employment by accelerating rural townships into a more digital-focused community.
Source: Stocks-Markets-Economic Times
