SEBI orders enforcement against Varanium Cloud Limited and linked entities over financial…

This is a final enforcement order by SEBI regarding Varanium Cloud Limited and its associated individuals, addressing allegations of misrepresentation of financial statements, misuse of IPO and Rights Issue proceeds, and failure to disclose related party transactions.

Varanium Cloud Limited, Harshawardhan Hanmant Sabale, Vinayak Vasant Jadhav, Mukundan Raghavan, Hetal Somani, First Overseas Capital Limited, Athos Capital Advisors Private Limited, Jinesh Narottamdas Mehta, Raj Jagtani, Fahim Iunus Shaikh, Kalpesh Anil Acharekar

• SEBI found that the company misrepresented financial statements and prospectus, including fictitious sales and purchases.
• SEBI found that IPO and Rights Issue proceeds were mis-utilized and diverted to promoter group entities.
• SEBI found that the company failed to disclose related party transactions and pending litigations.
• SEBI found that the merchant banker (First Overseas Capital Limited) failed to exercise due diligence in preparing the prospectus.
• SEBI found that certain individuals aided and abetted the company in defrauding investors.
• The order references an Interim Order dated May 10, 2024, and a Confirmatory Order dated October 21, 2024.
• A Show Cause Notice was issued on October 20, 2025.

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