This Share Surged 2,122% In 2024 - SEBI Halts Trading To Protect Investors - More Details Here

Bharat Global Developers’ shares fell sharply, hitting the lower circuit limit of 5 per cent during early trading on December 23, 2024, after the Securities & Exchange Board of India ( SEBI ) suspended trading in the stock until further notice. In addition to halting trading, SEBI has indefinitely barred the company’s promoters from accessing the capital markets.

SEBI: Suspicious Financials and Complaints

This regulatory action follows a complaint filed on December 16, 2024, and increasing social media attention regarding the company’s questionable financials and disclosures. The complaint highlighted a dramatic surge in Bharat Global Developers’ stock price, which rose 105 times between November 2023 and November 2024.

Sudden Stock Price Surge

From December 26, 2023, when the stock was priced at Rs 51.43 per share, it skyrocketed by a staggering 2,304 per cent to Rs 1,236.45 as of December 23, 2024. This extraordinary surge in value raised concerns about the legitimacy of the company’s financial performance and corporate activities.

SEBI Investigation

SEBI’s investigation revealed discrepancies in Bharat Global Developers’ financial statements. Up until FY 2023, the company reported negligible revenue, expenses, fixed assets, and cash flow. However, its financial results for the March 2024 quarter showed an unusual spike in both revenues and expenses, raising suspicions of potential misrepresentation.

The timing of these financial changes coincided with several key business activities, including a management overhaul in December 2023, large preferential allotments, and the announcement of high-value business deals. Notably, on October 30, 2024, the company established six new subsidiaries—just one day before the lock-in period for preferentially allotted shares expired.

SEBI is continuing its review of the case to ensure that the company complies with regulatory standards and to assess any potential market manipulation or other violations of securities laws.