Man Industries shares fall up to 16%; Management says SEBI order to not impact operations

Shares of Man Industries (India) Ltd. declined 16% on Tuesday, September 30, after the company's management said the market regulator's ban on the company from accessing the securities markets for two years does not impact its operations.

The company said the penalty is minimal in nature when compared to its size and operations and it has no impact on the day-to-day functioning of the business. It said it continues to have a strong order book of 4,700 crore and is fully operational.

"The Company does not engage in any trading activity in securities markets, and therefore, the directions relating to restrain from accessing the securities market have no impact on its core business operations," Man Industries said in an exchange filing.

Market regulator Securities and Exchange Board of India (SEBI) issued an order on Monday barring Man Industries and its three top executives from accessing the securities markets for two years due to alleged fund diversion.

The three top executives include the company's chairman, managing director and former finance chief.

SEBI found the company had failed to consolidate its unit Merino Shelters in its financials between the financial years 2015 and 2021, misrepresented related-party transactions, and also engaged in round-tipping of funds to mask its financial position.

The market regulator will seek a ₹25 lakh penalty each from the pipes and steel products maker, its managing director Nikhil Mansukhani, chairman Ramesh Mansukhani and former finance chief Ashok Gupta.

Shares of Man Industries (India) Ltd. were down nearly 16% at ₹341.1 apiece in early trade on Tuesday. The stock has declined 11.4% in the past month.

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