SEBI restricts Nirman Agri Genetics after 93% IPO funds diverted

This order confirms interim restrictions on Nirman Agri Genetics Limited and its Managing Director, Pranav Kailas Bagal, following SEBI's preliminary findings that approximately 93% of the company's IPO proceeds were diverted through fictitious entities. SEBI determined that the company's arguments for lifting these restrictions were unsubstantiated and that maintaining the restraints is necessary to protect investors.

Who it concerns: Nirman Agri Genetics Limited (Noticee No. 1) and Pranav Kailas Bagal (Noticee No. 2)

What SEBI found or ordered

• SEBI confirmed the interim direction restraining Nirman Agri Genetics Limited from accessing the securities market in any manner.
• SEBI confirmed the direction halting corporate actions, including bonus issues, stock splits, and proposed company name changes.
• SEBI confirmed the direction restraining Pranav Kailas Bagal from buying, selling, or dealing in the company's shares directly or indirectly.
• SEBI noted that the noticees failed to provide written submissions or supporting documents to rebut the prima facie findings of fund diversion.
• The directions take effect immediately and remain in force until further orders.
• SEBI stated that the observations are tentative pending a detailed investigation.

Also in the document

• SEBI stated that the company's reported financial profits cannot be used as a basis for regulatory relief because the financials may not present a true and fair picture due to alleged mis-stated accounting entries.
• SEBI observed that allowing corporate actions like stock splits and bonus issues while under investigation for fraud could artificially increase liquidity and induce retail investor participation, posing a risk of further offloading onto unsuspecting investors.
• The order was passed by Kamlesh Chandra Varshney, Whole Time Member, SEBI, on August 10, 2026.