Stock manipulation: Vipul
Over the past one year, the stock price of Vipul shot up by 883%. Even though nearly 35% of the promoters’ shares is pledged, this does not appear to be a concern for the regulator
 
Present on the S&P BSE Small Cap index, Vipul Ltd  generates revenue from the construction and development of real estate. Over the past four quarters, this small-cap stock has generated total revenue of Rs267 crore and a net loss of Rs3.68 crore. The stock was thinly traded until a year back, with a turnover of about Rs1,000 per day in February 2014. However, the trading turnover shot up to over Rs10 lakh a day in February 2015.
 
Over the past one year, the stock price has shot up by 883% to Rs45.90 on 1 April 2015 from Rs4.67 on 25 March 2014. Nearly 35% of the promoters’ shares have been pledged to multiple finance institutions to secure loans. The steep rise in the stock price and the high quantity of pledged shares do not appear to be a concern for the regulator.
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    Stock manipulation: Twentyfirst Century Management Services

    The stock price of Twentyfirst Century Management Services is up 926%. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh

     

    Twentyfirst Century Management Services (TCMS) is apparently engaged in trading and investment in Indian capital markets. In 1998, its registration as a merchant banker was revoked for not exercising due diligence. In 2008, TCMS was suspended from trading due to non-compliance with the listing agreement. TCMS cites poor market conditions for its poor financial performance in the past few years. Because of low retail participation, TCMS withdrew the broking services offered by its subsidiary Twentyfirst Century Shares and Securities and surrendered the trading membership of the NSE. It reported marginal revenues and a net loss in past few years. But, suddenly, over the past few quarters, its fortunes changed. For four quarters ended December 2014, it generated revenues of Rs19.35 crore while net profit amounted to Rs14.87 crore. The stock price is up 926% to Rs39 (on 20 March 2015) from Rs3.80 on 19 March 2014. The stock averages just about 75 trades a day, with an average daily turnover of only Rs6 lakh. Not suspicious enough for the regulator, despite the stock’s vertical trajectory? 

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    Stock manipulation: ICVL Chemicals
    ICVL Chemicals went up nearly 100 times or 9841% in just over a year with marginal profits
     

    ICVL Chemicals was earlier into trading of chemicals, shares and providing ‘advisory and consultancy services’. Listed in 2012, the company’s management changed hands in May 2014. Ram Alloy Castings became the new promoter. In January 2015, the registered office of ICVL Chemicals was shifted from Mumbai to Delhi and mineral extraction was included as additional business. With almost nil revenues reported in FY12-13 and FY13-14, ICVL Chemicals has begun to report revenues in the past two quarters. For the quarter ended September 2014 and December 2014, revenues were Rs4.09 crore and Rs8.30 crore, respectively. Net profit was just Rs5 lakh and Rs9 lakh, respectively. 
     
    But does any of this have any bearing on its stock prices? The share price has risen from Rs2.20 on 13 December 2013 to as high as Rs218.70 on 5 March 2015—a rise of nearly 100 times or 9841%. Over the one-year period ended December 2014, the stock averaged just two-three trades a day, most of the time hitting the upper circuit. This is clearly a  case of money laundering and tax evasion. At the current price, the stock is valued at a price-to-earnings of about 7,046 times. Will the regulators and tax authorities care to investigate?
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