VakrangeeBSE -9.99 %’s losses brimmed over into the fifth trading session on Friday amid reports that the company has come under the Sebi scanner for alleged price and volume manipulation of its own scrip on the BSE and the NSE.
The stock dived 48 per cent to Rs 263.10 on February 1, from Rs 505.35 on January 25. The scrip hit lower circuit of 10 per cent on Friday.
During the same period, marketcapitalisation of the company — a proxy for its investors’ wealth — saw an erosion of Rs 25,649.50 crore at Rs 27,857.11 crore.
According to Mumbai Mirror, Vakrangee Ltd, the largest enrollment agency for UIDAI and claims to have carried out over 50 million Aadhaar enrolments, has come under Securities Exchange Board of India’s (SEBI) investigation for alleged price and volume manipulation of its own scrip at Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Mumbai Mirror last week reported that the trading of the Vakrangee scrip was analysed by both the exchanges from January 1 to June 30, 2016, and September 1, 2016, to June 15, 2017, following which it was suspected that certain entities were trading the scrip and jacking up its market gross.
An NSE analysis report of trading of the Vakrangee scrip between January 1 and June 30, 2016, showed that a group of 22 clients related to each other as well as to the company were continuously buying and selling the scrip, accounting for 74.87 per cent of market gross on certain days, the report said.
They traded the scrip on 123 days, and 18 of the 22 had more than 90 per cent trading activity in this stock only, the report added.
The scrip hit a 52-week high of Rs 515.40 on January 24 and 52-week low of Rs 149.10 on February 9, 2017.
In a reply to the clarification sought by the exchanges, Vakrangee said that it is “functioning on strong corporate governance standards and all events, information having a bearing on the operation or performance of the company is timely and properly furnised to the exchanges.”
“The promoters have increased their stake over a period of time which shows their commitment towards the growth and development of the company and its stakeholders,” Vakrangee said in a release.
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