Despite no business activity since 2006, in just over a year, the price of Nobel Explochem shot up by 1235%

Established in 1982, Noble Explochem (Noble) was a leading manufacturer of nitro-glycerine-based explosives. In April 2004, the government prohibited the possession, sale and use of nitro-glycerine-based explosives, leading Noble to discontinue its manufacturing activities. The company, then, ventured into new business activities but was unable to make profits. The promoters offloaded their stake in the following years reducing it to around 15% from 65%. In November 2006, Noble stopped all business due to financial crisis and labour unrest. The defunct company has incurred losses in the past 10 financial years and the total net worth is eroded. In July 2011, the Board for Industrial and Financial Reconstruction (BIFR) declared Noble as a sick industrial unit. Despite nil revenues, the stock has attracted trading interest. Astonishingly, in just over a year, the price shot up by 1235%, to Rs6.81 on 15 September 2014 from Rs0.51 on 23 August 2013. Since then, the price has dropped by 32% to Rs4.66 on 3 February 2015; yet, it is up 814% from its low in August 2013. But the regulators don’t find this suspect.