The Securities and Exchange Board of India on Tuesday barred LS Industries Ltd., its promoter Profound Finance, and four other entities from the securities market, for stock price manipulation.
The regulator first observed an article written on the website of NDTV Profit on Feb. 3 this year, flagging how a company with almost negligible revenue had a valuation of Rs 5,500 crore. The subsequent investigation by the regulator in the company’s affairs uncovered suspicious trading patterns, misleading disclosures and transfers to an NRI.
Looking at the unusually high fluctuations of the company’s share price, the regulator found that from July 23, 2024, it rose from Rs 22.50 per share to Rs 267.50 in just two months, an increase of 1,089%, before crashing to Rs 42.39 by November 2024.
It then rose again to Rs 136.87 in December 2024, before settling at Rs 67.95 in February 2025. SEBI found that a group of traders—Multiplier Share & Stock Advisors, Setu Securities, Paresh Dhirajlal Shah, and Ruchira Goyal—were behind this.
They placed large buy orders to create a price surge, then later dumped shares, triggering lower circuits and price crashes.
NDTV Profit also reached out to LS Industries, its promotor and auditor for a comment on the issue. However there was no response from them at the time of publishing this report.
