New Delhi, October 15, 2025: In a major enforcement action, the Securities and Exchange Board of India (SEBI) has barred Nirman Agri Genetics Ltd (NAGL) from trading in the securities market over serious allegations of misuse of IPO proceeds. Following the regulator’s order, the company’s shares plunged 5% to hit the lower circuit limit at ₹166.85 on Tuesday.
SEBI’s Interim Order
In its interim directive issued by Whole-Time Member Kamlesh Chandra Varshney, SEBI prohibited the company and its promoter Pranav Kailas Bagal from buying, selling, or dealing in securities until further notice. The regulator also directed the company to suspend all proposed corporate actions, including bonus issues, stock splits, and its proposed name change to “Agricare Life Corp Ltd.”
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Diversion of IPO Proceeds
The investigation revealed that the company diverted ₹18.89 crore out of the ₹20.30 crore it had raised through its IPO — amounting to nearly 93% of the total funds.
According to SEBI, the funds were transferred to entities that were either non-existent, dubious, or under the control of Bagal and his family members.
The order noted that NAGL provided contradictory and misleading disclosures regarding the utilisation of funds and failed to produce valid invoices or documentary evidence to substantiate its claims.
SEBI stated:
“The company failed to demonstrate that the entities to which payments were made had any genuine business agreements or valid invoices. Alarmingly, payments to three entities were found to have been credited to bank accounts belonging to entirely unrelated parties.”
Suspicious Vendors and Non-existent Operations
NAGL claimed to have paid ₹12.14 crore to four vendor entities, but SEBI’s probe found these vendors to be non-genuine and lacking business credentials.
A site visit conducted by the National Stock Exchange (NSE) revealed that the addresses provided for these entities did not house any operational offices or agricultural activities, as the company had claimed.
Market Impact
Listed on the SME platform, NAGL’s stock fell 5% to ₹166.85 per share, hitting its lower circuit limit soon after SEBI’s order became public.
The company’s 52-week range stands between ₹130 (low) and ₹456 (high), with a current market capitalization of approximately ₹133 crore.
Further Action Possible
SEBI’s order emphasized that the findings were preliminary and interim in nature, but indicated that if the charges are substantiated, the company and its promoters could face further proceedings under the Prevention of Money Laundering Act (PMLA) and other applicable laws.
Until the conclusion of the investigation, Nirman Agri Genetics Ltd and its key promoters remain barred from all market-related activities.
