Stories of price manipulation
Nova Iron & Steel (Rs40)
Nova Iron & Steel is partly owned by Bhushan Power & Steel Ltd; the latter holds over 39.48% of the shares outstanding. The latter also has a subsidiary which holds 27.57% of 
Nova Iron & Steel. It is pertinent to note that Nova Iron & Steel was suspended by the BSE in the past for violation of listing norms.
BSE revoked the suspension on 7 May 2010. In October 2012, the company reduced the face value of its equity share from Rs10 to Rs2.40. The fundamentals of the company have been erratic. Sales seesawed over the past five quarters; in the March 2012 quarter, sales were Rs54.85 crore; they were Rs15.15 crore in the June quarter, Rs53.92 crore in the September quarter and Rs24.20 crore in the December quarter before sliding to Rs12.09 crore in the March 2013 quarter.
The company did not make profits in four out of these five quarters. Yet, the share price rocketed 591% between 17 September 2012 and 12 July 2013, from Rs6.08 to Rs42. As usual, after investing crores of rupees in surveillance equipment, SEBI couldn’t care less.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
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