Key Details of SEBI Communication

  • SEBI Reference Number: HO/49/13/11(278)2026-CFD-SEC3I/11849/2026
  • Letter Date: May 19, 2026
  • Date of Receipt: May 22, 2026 (received by courier)
  • Addressed To: Ms. Jaini Shaileshbhai Jain, Company Secretary & Compliance Officer
  • Subject: Administrative Warning for non-compliance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("ICDR Regulations") and SEBI (Merchant Bankers) Regulations, 1992 in the matter of Rachana Infrastructure Limited

Specific Violations Cited

SEBI's examination of the SME IPO of Rachana Infrastructure Limited revealed that:

  • The Prospectus dated May 09, 2022 contained an inaccurate Order Book disclosure
  • The value of the work "Construction of Four Lane Divided carriageway with paved shoulder from patan (Near Rajpur) at Km 128.940 (design), a length of 76.940 km (PKGII) of NH-68 in Gujarat under NH (O) on EPC mode L1 in Tender Financial Opening" was stated as ₹140 crores (19% of total contract value)
  • However, the Joint Venture Agreement allocated only 5% of the contract value to Rachana Infrastructure Limited
  • This constituted inadequate due diligence by the Merchant Banker (Interactive Financial Services) and resulted in the Offer Document not containing true and adequate disclosure regarding Order Book value

Regulatory Provisions Violated

  • Regulation 245(3) of the ICDR Regulations
  • Regulation 13 read with Clause 4 of Schedule III of SEBI (Merchant Bankers) Regulations, 1992

SEBI Action and Requirements

  • SEBI has issued an administrative warning
  • The company is warned to be careful in future and improve compliance standards
  • Failure to avoid recurrence may result in appropriate enforcement action

Company's Assessment of Impact

As per the Annexure A disclosure, the company states: "No material impact on financials/operations of the Company"

Disclosure Compliance

Distribution

Copy marked to: NSE (Via email)