Stock manipulation: Vitan Agro Industries
Moneylife Digital Team 23 December 2015

Vitan Agro Industries shot up by 1465% between July 2014 and December 2015


Vitan Agro Industries is into “trading of agro-based consumer goods such as pulses, grains, etc.” According to its annual report of FY14-15, it plans to venture into delivering packed lunches to companies, educational institutions, IT hubs, etc, on contract basis, and own, manage and run hotels and restaurants. For this, it has acquired two companies. 
Despite its bold business plans, as on 31 March 2015, there was only one employee on the rolls of this Chennai-based company! In the four quarters ended September 2015, it reported revenue of Rs5.34 crore, up 62% from Rs3.29 crore in the same period last year. The profit remained the same, at Rs0.31 crore, in both the years. 
However, the price movement of the stock has been stunning. It shot up to Rs15.65 on 16 December 2015 from Re1 on 17 July 2014, an eye-popping gain of 1,465%! There was hardly any trading activity prior to September 2014. When it started rising, the stock was constantly locked in the upper circuit. By 8 June 2015, the price was up 3,544%. to Rs36.44. This is when the reversal started. Over the next six months, the price was locked in the lower circuit on almost every trading day. The price has fallen nearly 57% from the peak, over this period. Vitan Agro has around 600 registered shareholders. Will the regulator investigate this ‘pump & dump’ operation? 
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