Wipe it off! Sebihit’s small and medium-sized superstar stock price fell 88% from its highest point in 8 months.
The company debuted on the stock exchange in September 2022 and has become popular among investors thanks to its multibagger returns. Just four months after listing, the stock price soared to Rs 1,602 against the offer price of Rs 122.
However, the decline accelerated rapidly as concerns about financial manipulation and misuse of net profits surfaced. The company has at times denied all allegations.
A week ago, Sebi had found that the company had allegedly misused IPO proceeds and engaged in dubious transactions, painting a false picture of its good financial health and promising growth prospects to the general public.
The regulator, which launched an investigation after news items and social media posts raised concerns about the company’s financial statements and corporate presentations, immediately banned Varanium Cloud and its promoter Harshawardhan Hanmant Sabale from the capital markets. According to the order, promoter Harshawardhan Hanmant Sabale created a positive narrative through public announcements that attracted many individual investors to purchase the shares. In an effort to present that picture, Varanium and its promoters struck deals that appeared only on paper and nothing happened on the ground. Hanmant Sabale is also prohibited from acting as a director or principal manager of any listed company or any of its subsidiaries or any company seeking to raise funds from the public or Sebi registered intermediaries until further orders.
Varanium Cloud, previously known as Streamcast Cloud Pvt Ltd, claims to provide cutting-edge digital, technology and internet services to second-tier cities.
The company’s platform is said to have the potential to have a positive impact on education, economic growth and employment by accelerating rural towns into more digitally driven communities.
