Sebi bars Pacheli, 6 others from securities market for pump-and-dump activities
Pacheli Industrial Finance (PIFL) and six other entities from accessing the securities market for indulging in a 'pump and dump' operation.
The regulator said the company was taken up for examination because the share price movement of PIFL did not appear consistent with the reported financials.
The company did not record any operating income in FY22 and FY23. Further, the operating revenue of ₹1.07 crore reported in FY 24 was driven by bad debt recovery and interest income from loans.
Consequently, the price to earnings ratio moved to 4,05,664 (January 16, 2024) — an extraordinarily steep valuation showing an apparent disconnect between the share price and fundamentals of the company, Sebi said in its interim order on Thursday.
The regulator also alleged that the preferential allotment done by the company «appears to have been part of a well-orchestrated effort to expand the share capital of the company and allot shares to connected entities without receiving any consideration, at the cost of the existing public investors,» it said.
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