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Man Industries Shares Tank 16% After Sebi Uncovers Fraud, Bans Executives
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Man Industries shares fell 16 percent after Sebi banned the firm and three executives, including Ramesh Mansukhani, for two years.
Man Industries shares tank 16% on Tuesday.
Man Industries Share Price: Pipe manufacturing company Man Industries shares tanked 16 per cent on Tuesday following Sebi’s action to ban the firm and three of its senior executives from the securities market for two years, along with a Rs 25 lakh fine on each for alleged financial fraud.
Shares of Man Industries (India) were trading 11.73 per cent lower around 11:19 am at Rs 359 apiece, against the previous day close at Rs 406 apiece. The day’s low stood at Rs 340 apiece.
The order named Ramesh Mansukhani, Chairman of Man Industries; Nikhil Mansukhani, Executive Director; and Ashok Gupta, former Executive Director and current CFO, as the individuals penalised.
Sebi found that the company’s financial statements for FY 2015-16 to FY 2020-21 were “deliberately misstated.” The regulator said these misrepresentations, omissions, and concealments were part of a scheme that deprived investors of a true view of the company’s financial position.
The order noted that MIIL’s wholly-owned subsidiary, MSPL, was excluded from consolidation after FY 2014-15 without explanation. This, Sebi said, hid group-level losses and liabilities while artificially boosting MIIL’s reported profits.
“I conclude that the financial statements of MIIL for FY 2015-16 to FY 2020-21 were misrepresented, creating a false picture of profitability, liquidity, and group-level risks for investors. This constitutes a fraudulent and unfair practice by the noticees,” said Sebi Chief General Manager N Murugan.
By doing so, the company and its executives violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations. In response, Sebi barred them from market participation for two years and levied fines.
The action follows a complaint alleging diversion of funds to subsidiaries and non-consolidation of results to conceal losses. Sebi subsequently conducted a forensic audit, appointing an auditor on November 22, 2021, to investigate MIIL’s accounts from FY 2014-15 to FY 2020-21.
In response, the company said, “the SEBI order pertains to legacy matters and carries no material impact on the company’s current or future operations. With a strong order book, improving margins, disciplined governance, and a robust capex pipeline, the company is well positioned to deliver sustainable growth and value for shareholders. We reaffirm our solid fundamentals, commitment to corporate governance, and focus on long-term value creation for all stakeholders.”
(With PTI Inputs)
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 30, 2025, 11:28 IST
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