BSE Warns Investors Against Trading In Spright Agro Stock

The Bombay Stock Exchange, in its capacity as a first line regulator, has warned investors against trading in the shares of Spright Agro Ltd, in a press release dated Sept 11. The exchange has urged the investors exercise caution when dealing in the penny stock, especially based on online tips and recommendations.

The exchange noted that tips about trading in the scrip based on online or unregistered advisory from Telegram, WhatsApp and others must be taken with circumspection.

As reported previously by NDTV Profit, market regulator Securities and Exchange Board of India conducted searches at the company’s premises in June 2025. But the company’s name was not disclosed in the media release issued by SEBI after the searches.

A preliminary investigation that followed led SEBI to prepare interim directions to curb alleged market manipulation. But the order has not been released yet due to regulatory back and forth, people in the know mentioned.

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As reported by NDTV Profit on July 10, the markets regulator was probing possible violations in the company, related to preferential allotments, share splits, bonus issues, rights offerings, suspicious trading and offloading of shares by non-promoter entities, the people said. The alleged violations happened between August 2023 and April 2025.

Spright Agro’s board had previously approved a 1:10 stock split and a 1:1 bonus issue in February 2024, which took effect on March 18, 2024. Another 1:1 bonus issue followed in November 2024.

Amid these actions, the company also issued 3.34 crore shares on a rights basis at Rs 13.40 per share in June 2024, raising approximately Rs 44.87 crore. However, 16 out of 35 original preferential allottees sold their rights and earned a combined profit of Rs 29.56 crore, raising questions about the intent behind the rights issue.

SEBI is also scrutinising a sudden and significant improvement in the company’s reported financials. Between the first quarter of FY21 and second quarter of FY24, Spright Agro’s net profit remained below Rs 51 lakh.

However, from November 2023 onward, around the time of the preferential allotment and warrant conversion, the company began reporting profit above Rs 5.5 crore per quarter.

While the company has been under the SEBI scanner, summons have likely not been issued in the case. Meanwhile, the company has come out with a detailed agenda for it upcoming board meeting.

The company will consider issuing bonus equity shares in the ratio of 10:1, as per the disclosures made on the exchange website. This means shareholders could receive ten bonus shares for every one equity share held, subject to shareholder and other necessary approvals. This will be done by capitalising free reserves or securities premium.