Unquoted: Lime Chemicals
Moneylife Digital Team 20 January 2014

Stories of price manipulation

Lime Chemicals (Rs5)

Lime Chemicals Ltd manufactures calcium carbonate, a raw material for several industries. It failed to disclose its shareholding pattern as per the listing agreement of the BSE in June 2011. Interestingly, the company was declared ‘sick’ by an order from the Board for Industrial and Financial Reconstruction, way back in 2010, and Bank of Baroda had been appointed to revive the company. But nothing has happened so far; the company continues to incur losses. Over the past nine reported quarters, beginning September 2011 and up to September 2013, its net sales increased from Rs2.72 crore in September 2011, peaked at Rs8.67 crore in March 2013, and declined marginally after that. However, during the same period, i.e., from September 2011 to September 2013, the company reported losses in eight out of nine quarters. The biggest joke is on the regulators, namely, the BSE and SEBI. Why? The share price of this sick company rocketed a humongous 492% between 29 April 2013 and 13 January 2014. Clearly, the regulators don’t give a damn about regulating.

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