Authority: Kamlesh Chandra Varshney, Whole Time Member, Securities and Exchange Board of India

Order Date: August 10, 2026

Case Overview

This confirmatory order follows an Interim Order dated October 14, 2025, issued against Nirman Agri Genetics Limited (NAGL) and its Promoter and Managing Director, Mr. Pranav Kailas Bagal. The proceedings stem from an examination into the utilization of IPO proceeds raised by the company, which revealed prima facie evidence of systematic diversion and siphoning of approximately 93% of the IPO proceeds. The funds were allegedly routed through conflicting vendor profiles, nonexistent entities, and shell layers, ultimately benefiting the promoter group and connected persons.

During personal hearings held on July 16, 2026, the Noticees argued that some diverted funds had been returned to the company's account and requested vacation of restrictions on corporate actions (bonus issue, stock split, and name change) citing profitable financials. However, they failed to provide any supporting documentation or evidence to substantiate these claims or rebut the prima facie findings of the Interim Order.

The authority found that any claim of fund repatriation does not erase the initial act of routing public money through layered, fictitious entities immediately after the IPO listing. The company's financial profits were deemed unreliable as they were based on mis-stated accounting entries with massive capital allocations routed as unverified "advances for purchases."

Final Outcome

SEBI confirmed all ad-interim directions from the October 14, 2025 order:

  • Noticee No. 1 (Nirman Agri Genetics Limited) remains restrained from accessing the securities market in any manner
  • Noticee No. 1 is directed to halt corporate actions relating to its bonus issue, stock split, and proposed company name change
  • Noticee No. 2 (Pranav Kailas Bagal) remains restrained from buying, selling, or dealing in NAGL scrip, directly or indirectly

The directions take effect immediately and shall remain in force until further orders. The observations are tentative pending detailed investigation, which will proceed without being influenced by this order. A copy has been forwarded to stock exchanges, depositories, and registrar and share transfer agents for compliance.

Topics: SEBI Enforcement, IPO Fund Misuse, Market Restrictions