SEBI finds ₹4,925 crore market cap rise for Dhenu Buildcon despite negligible revenues

This is an interim order by SEBI regarding Dhenu Buildcon Infra Limited (DBIL) and eight other entities/individuals, examining allegations of round-tripping of funds and manipulation of DBIL's financial statements and share price through purported loans and preferential allotments.

Who it concerns: Dhenu Buildcon Infra Limited, Golkonda Aluminium Extrusions Limited, Shanta Agencies Private Limited, Shri Niwas Leasing and Finance Limited, Tiaan Consumer Limited, Twinkle Mercantiles & Credits Private Limited, Utsav Securities Limited, Surendra Kumar Jain, and Virendra Jain.

What SEBI found or ordered

• SEBI initiated the examination based on a reference from the Serious Fraud Investigation Office (SFIO).
• SEBI found prima facie evidence of round-tripping of ₹1,000 crores in unsecured loans received by DBIL from seven entities between December 24, 2024, and December 31, 2024.
• Approximately ₹840 crores of these loans were converted into equity shares via preferential allotment to six of the lending entities.
• The allotment resulted in the new allottees holding approximately 99.70% of DBIL's outstanding equity shares.
• SEBI alleges prima facie violations of the PFUTP Regulations and the SEBI Act, including manipulation of books of accounts and financial statements.
• The order is interim, issued under Sections 11(1), 11(4), and 11B of the SEBI Act.
• DBIL's NBFC registration was cancelled by the Reserve Bank of India in September 2025.

Also in the document

• DBIL's market capitalization increased from approximately ₹3 crores to ₹4,925 crores during the examination period, despite negligible revenues and profits.
• The share price increased by approximately 194.62% (open-close basis) during the examination period.
• The examination period covered August 1, 2024, to July 31, 2026.
• SEBI identified 28 distinct routing variations across 46 transaction cycles involving a common pool of entities before funds returned to DBIL.