SEBI has given a clean chit to a recently conducted an investigation into the trading activities of certain entities in the scrip of Vakrangee Limited. During the investigation, there were no findings or instance of any stock manipulation by Promoter or Promoter group entities.
However, During the SEBI investigation it was observed that promoter entities viz, NJD Capital Private Limited along with Vakrangee Holdings Private Limited, Mr. Dinesh Nandwana and Dinesh Nandwana (HUF) (being members of promoter and promoter group), had increased their shareholding from 38.71% of share capital to 41.61% of share capital between June 2015 to August 2015. They were required to make disclosures related to the above transactions to the company / stock exchanges pursuant to the provisions of SEBI (PIT) Regulations, 2015 and SEBI (SAST) Regulations, 2011 within the time frame specified thereunder. It was observed that there was a slight delay in intimating the same to the company and to the stock exchanges. The aforesaid matter was reviewed by SEBI and it was intimated to the promoters to be careful in future to avoid recurrence of such instances.
Commenting on the same, Mr. Dinesh Nandwana, MD & CEO, Vakrangee Ltd said,“We have always maintained that these rumor based media articles relating to stock manipulation are false and completely baseless. We have been proven right today as you can see the outcome of the EOW investigation and SEBI investigation.
We are positive and confident with respect to our business model. We have taken a strategic decision to upgrade all our existing stores into a standardized Next Gen format. I am happy to share that, with our progressive efforts and strong positive response received from our franchisees, there will be 3,500-4,000 outlets upgrading to the Next Gen model during this quarter before 31st December, which are already in the advanced stage of completion.
The promoters have also received a clean chit from the office of Economic offences wing (EOW). A complaint was filed with the office of Economic Offences Wing (EOW) against the Company and its Promoter/ Managing Director & CEO Mr. Dinesh Nandwana relating to price/ volume manipulation and accordingly EOW had conducted an enquiry. The Company had provided all the satisfactory replies along with supporting documents to the queries that were raised by the office of EOW. Upon completion of their investigation, the office of EOW have communicated to the Company that they have not found any substance in the complaint and hence closing the enquiry, thereby giving clean chit to the Company.