According to SEBI’s October 2025 interim order, its prima facie findings indicated the alleged diversion and siphoning of around 93% of the IPO proceeds.
The funds were allegedly routed through conflicting vendor profiles, non-existent entities and layered structures, ultimately benefiting the promoter group and connected persons.
Under the directions confirmed by SEBI on August 10, Nirman Agri Genetics will remain restrained from accessing the securities market until further orders. The company has also been directed to halt corporate actions relating to its proposed bonus issue, stock split and change of name.
Bagal has been restrained from buying, selling or otherwise dealing in shares of Nirman Agri Genetics, either directly or indirectly.
SEBI rejects request to lift curbs
During the proceedings, the authorised representatives of the noticees submitted that some of the funds alleged to have been diverted had been returned to the company’s account. They also sought the revival of the corporate actions, citing the company’s profitable financial performance.
SEBI said no evidence had been submitted to support the claim regarding repatriation of the funds. It added that bringing back part of the allegedly diverted money does not erase the initial routing of public funds through layered, fictitious or suspect entities following the IPO listing.
The regulator also noted that the noticees had not provided signed agreements or other documents to validate the transfer of IPO funds to various entities or otherwise rebut the prima facie findings in its interim order.SEBI said the request to proceed with the stock split and bonus issue could not be accepted at this stage, citing the potential risk of increased liquidity and market float while its investigation remains ongoing.
The regulator said the ad-interim measures were being maintained to protect the integrity of the securities market and prevent potential harm to public shareholders.
The directions will remain in force until further orders. SEBI also clarified that the observations in the order are tentative and subject to detailed investigation, with any further action to be based on the outcome of that investigation.
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