Any articles or resources to deep dive into these allegations?
1 Like
Have the rights issue been credited? I am wondering, while the growth outlook and recent performance looks good on paper, the share price doesn’t reflect those sentiments. I know this scrip has had some concerns with corporate governance but that’s quite some time ago. Even with the adjustment for rights issue at INR 10, the price should have settled around 18.5 to 19 Rs. What’s ailing this scrip?
Request the more informed folks for their insights.
Disc: Invested and concerned.
2 Likes
First time ever received shares thru rights issue of Infibeam. Confused that it is showing up in my Demat Holding as separate line with different name “Infibeam Avenues ltd PP”. Is this the way it will remain or will get synced with original holding at later date. Can some one throw light on this please.
It is Partially Paid → PP : On application, 5 rupees and on 1st call 5 rupess.
Once you pay the full amount after the company call .. these shares will go away and INFIBEAM share will be credited.
Thank you for that… a follow up question…not sure when the company will demand the remaining payment. What if I sell the Partpayment shares. Do the remaining payment demand will be recovered from me in future or it will be borne by the one who bought those shares?
1 Like
You sell the PP shares, you are free from any future liability. The holder at the time of the call will pay the remaining amount. You can sell or even buy more PP shares till that time since they’re freely traded on the exchanges till their conversion.
1 Like
The trading window for rights issue is over I think
A major fraud allegation concerning Infibeam promoters emerged in 2018, when a viral WhatsApp message alleging corporate governance issues caused the company’s shares to plummet by 73% in a single day.
The Securities and Exchange Board of India (SEBI) also initiated enforcement proceedings against the company’s senior officials and promoter group entities for alleged insider trading in 2017.
The 2018 WhatsApp message and stock crash
The message, which circulated widely among traders, contained serious allegations against Infibeam and its promoters.
- Questionable accounting: The message claimed the company engaged in dodgy accounting practices.
- Interest-free loan: It alleged that Infibeam had extended a significant unsecured and interest-free loan to a related party with negative net assets.
- Founder reclassification: The note also falsely claimed that a co-founder had been reclassified as a non-promoter.
Aftermath and company response:
- Following the market chaos, Infibeam released a clarification stating there was no pending information that would affect the stock price.
- The brokerage firm falsely named in the message, Equirus Securities, denied sending it.
- The company also stated that no promoters had diluted their stake.
- Executives at Infibeam admitted to giving loans to group companies but maintained they were short-term and fully repaid.
Insider trading case and settlement
In 2021, SEBI concluded an investigation into alleged insider trading at Infibeam in 2017.
- Accused parties: The investigation named several individuals and entities, including:
- Vishal Mehta (Managing Director)
- Malav Mehta (his brother and a director at Infinium Motors)
- Hiren Padhya (Chief Financial Officer)
- Infinium Motors (Gujarat) Ltd (IMGPL), a promoter group entity
- Violation: SEBI’s probe found that certain entities traded shares while in possession of unpublished price-sensitive information.
- Resolution: The case was settled after the four parties filed applications with SEBI. They paid a combined settlement amount of Rs 2.9 crore without admitting or denying guilt.
Auditor dispute
In May 2019, a public dispute occurred between Infibeam and its auditor, SRBC & Co., an affiliate of EY.
- EGM notice: Infibeam called an extraordinary general meeting (EGM) to remove SRBC as a joint statutory auditor, claiming the firm had shared unpublished price-sensitive information (UPSI).
- Auditor’s statement: SRBC denied the accusation, stating that Infibeam’s notice did not accurately represent the communication trail between the two companies. It insisted on a third-party audit to resolve the matter.
Its a CHOR company
I owned some of the shares back in 2018 and lost almost 50% of my capital in this stock — a tough lesson learned. However, I’m trying to understand how SEBI can settle a case by accepting a combined settlement amount of ₹2.9 crore without the parties admitting or denying any wrongdoing. In effect, investors lose money, certain promoter groups may benefit, and SEBI also receives the settlement amount — does this mean all cases are simply closed in exchange for money?
1 Like
is this not a very old concern? Has the company not risen above that by now