Stock manipulation: Gajra Bevel Gears
The stock price of GBG rallied 399% unhindered, in three months, despite no business activities
 
Gajra Bevel Gears (GBG) is a dud company. Over the years, accumulated losses have eroded its entire net worth and made the company financially sick. The company stopped all manufacturing after 31 October 2006. In 2010, the Board for Industrial and Financial Reconstruction declared GBG a ‘sick industrial company.’ Over the past few years, GBG made a one-time settlement of the loan accounts of State Bank of India, IFCI, IDBI, etc. The premises of GBG are under the seizure of the provident fund authorities, for recovery of their dues. The PF authorities have now granted GBG an instalment facility for payment. 
 
Despite no business activity over the past nine years, suddenly, the price of GBG rallied unhindered from 2 March 2015 to 15 June 2015. In these three months, the stock rose 399% from Rs1.17 to Rs5.84, closing at the upper circuit on every single day.
 

However, this humongous rally was short-lived; the 15 days that followed, from 15 June 2015 to 30 June 2015, the stock price declined 19% to Rs4.72. This time, it closed at the lower circuit in each trading session. From a trading turnover averaging Rs10,000, for the year ended February 2015, the turnover shot up to average Rs1.11 lakh for the four-month period ended 30 June 2015. Who were the investors in GBG during this four-month period and why a sudden interest in a dud company? Seems like another pump & dump operation to launder money. Will the regulator investigate?
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Dharmesh Bhuta

4 years ago

investors have bought from IFCI as per following source.

http://rakesh-jhunjhunwala.in/check-out-...

Stock manipulation: Birdhi Chand Pannalal Agencies

Despite terrible financials, the stock price of Birdhi Chand Pannalal Agencies appreciated by more than 3451%, or 36 times in 9 months

 

Birdhi Chand Pannalal Agencies Limited (BCPAL) was earlier in the textiles business. In May 2015, the management decided to change the name of the company to BPCL International Ltd. Earlier, BCPAL had also announced plans to diversify into financial services and take over control of a non-banking finance company. Further, it plans to apply for a dealership of Steel Authority of India’s products. All this is rubbish. Over the past four quarters, BCPAL reported total revenue of just Rs40 lakh and a loss of Rs11 lakh. Yet, over the past nine months, the stock price appreciated by more than 3451%, or 36 times, to Rs559.25 on 11 June 2015, from Rs15.75 on 8 September 2014. In other words, if you had invested Rs10,000, in just nine months, you would be richer by over Rs3.55 lakh. Just one to four stocks were traded in each trading session over the past year, except in a few bulk deals. Each time, the stock hit the upper circuit. However, from 3 June 2015, the trend reversed direction, hitting the lower circuit in each session. Another pump & dump operation? The regulator doesn’t seem to care. The company has some 1,200-odd shareholders. Who are they? 

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Stock manipulation: Dalal Street Investments

A perfect example of a pump and dump stock, Dalal Street Investments rose by 11600% and soon declined 97% 

 

Listed on the BSE in 2001, Dalal Street Investments (DSI) ostensibly deals in shares and securities. Over the past four quarters ended March 2015, DSI reported total revenue of just Rs19 lakh and a net loss of Rs36 lakh. With a market-cap of Rs9 crore as on 28 May 2015, over the past nine years, the stock price movement of DSI has been amazing. It rallied smoothly and unimpeded from around Rs100 in March 2006 to a peak of Rs11,700 in June 2011, a rise of 11,600%. The smooth rally was a result of the stock being locked in its upper circuit of 2%, on each day that it was traded, day after day! Even the global financial crisis did not create any volatility in the stock. After hitting this peak, it started trending downward. This time, again, the downtrend was predictable, constantly hitting the lower circuit. From June 2011 to 26 May 2015, the stock declined by as much as 97%, from Rs11,700 to Rs306. On an average, there were just four or five trades each time the stock was traded since March 2006. In June 2013, DSI was debarred from trading in securities by SEBI for not complying with the minimum public shareholding requirement.

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COMMENTS

V ganesan

4 years ago

In indian market only speculators and manipulators are making money.It is ridiculous for cairn indiato be merged with vedanda one is a cash rich zero debt company and the other is huge debt in its books.Now it is the turn of sun tv .Recently one of my broker friend office one new person came and bought huge quantity in tamilnadu petro some 15 days back. I have surprised to see that person is a fool. TOday it proved i am the fool .The stock of tn petrohit upper circuit today after the news of ioc is buying.And another think regarding morganstanley including china A SHARES IN GLOBAL PORTFOLIO.Yesterday ms said it has deferred the issue.People have knowledge about this shorted in indian equioties .today they covered.My humble reques to NSE BSE SEBI AND GOVT OF INDIA Please ban futures and options segment in both the exchanges.Allow only index futures and options.And one more scam i suspect is block deals.when securities lending and borrowing is available through exchange platform.But is not take of .But through block deals how the seller got shares it is unknown.GOLD INVESTMENT IS SAFE IN INDIA EITHER FOR INVESTING OR FOR JEWELEERY.

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