After Sebi Setback, Multibagger Bharat Global Defers Bonus Issue And Stock Split

Beleaguered Bharat Global Developers Ltd. deferred the process of fixing a record date for its proposed bonus issue and stock split. The company, whose trading was suspended by India's stock market regulator over misrepresented financials and made-up names, would have decided on a one-to-ten stock split and eight-shares-for-10-held bonus issue on Dec. 26.

After careful deliberation [...] and in light of the interim order, the company has decided to temporarily defer the process of fixing the record date for the proposed bonus issue and stock split corporate actions," BGDL said in an exchange filing.

"The company is actively cooperating with Sebi to address the issues raised and is confident of achieving a fair and constructive resolution at the earliest," it added.

The Securities and Exchange Board of India, in its interim order, had said that BGDL created a "completely false" narrative about its design, engineering and construction business and was actively trying to induce investors to buy its shares based on false disclosures.

A preliminary investigation revealed the Bharat Global falsely claimed to have orders from a McCain Group company and misrepresented orders from Reliance Industries Ltd., UPL Ltd. and the Tata Group. The modus operandi in all such instances seemed to be using fake names for companies that resembled well-established entities.

The regulator is now looking to complete its investigation on the company and other notices by March 31 next year.

Bharat Global Developers' stock has spiked over 2,350% since December last year despite hitting the 5% lower circuit in the last two sessions before trade was suspended. It hit a record high of Rs 1,702.95 per share on Nov. 27, and has fallen 24% since then.