Stock manipulation: Mahanivesh (India) Ltd
Moneylife Digital Team 09 December 2015
Mahanivesh shot up by 502% between March 2014 and December 2015
 
Mahanivesh is supposedly into arranging ‘project finance’ and investments. But its main income is from trading. In September 2015, the company’s management decided to pursue the fad of the decade—e-commerce—and decided to change the name of the company. 
 
For the year ended September 2015 Mahanivesh reported revenue of Rs51.66 crore, up from Rs49.67 crore (just 4%) for the comparable period last year. But it reported a net loss of Rs2 lakh for the year ended September 2015, and net loss of Rs30,000 for the year ended September 2014. 
 
Despite virtually no profits being generated over the past three years, the stock shot up by 502%, to Rs514 on 2 December 2015, from Rs85 on 22 March 2014. In fact, the stock staged a continuous rally of 614%, from Rs98 on 13 October 2014 to an intra-day high of Rs700 on 13 November 2015. However, since then, the stock price has been on a decline. It has fallen nearly 26% from the peak. The stock has averaged just about 12 trades a day from March 2014 to November 2015. In the 79 days that the stock was traded, of the four-month period ended November 2015, on an average, just one to four trades per day were conducted. As on 30 September 2015, Mahanivesh had just 243 shareholders. 
 
In 2007, the company was suspended by the Bombay Stock Exchange for not complying with the listing agreement. Will the regulator investigate this suspicious trading activity?
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