New Bank of India Limited was into banking. Its business was taken over by the government in 1980 and, after nationalisation, the company changed its name to NBI Industrial Finance Co Limited and began to operate as a non-banking financial company (NBFC). It provides hardly any information to its shareholders. Its website does not have the directors’ reports for 2016 and 2017. Results for the December 2016 and March 2017 quarter are also not displayed on the website. The performance of the company is erratic and the management provides no explanation for it. Revenues, just Rs0.18 crore in the December 2016 quarter, rocketed to Rs97.44 crore in the March 2017 quarter and crashed to Rs1.02 crore in the June 2017 quarter.
NBI made a loss of Rs0.01 crore in the December 2016 quarter. It then made a profit of Rs78.26 crore in the March 2017 and a profit of Rs0.83 crore in the June 2017 quarters. NBI announced a share split of one equity share of Rs10 each into two equity shares of Rs5 each, recently. It has had the same auditor for the past 10 years and, due to the mandatory rotation of statutory auditors on completion of two consecutive five-year terms it changed its auditor from Lakhotia & Co to DK Chhajer & Co from the current financial year. The company has a market-capitalisation of Rs400 crore and trades at a price of Rs3,204 per share. The stock skyrocketed from Rs270 per share on 7 December 2016 to Rs3,250 per share on 13 October 2017 an increase of 1104% in one year. The regulators don’t seem to be bothered about such a clear case of rampant price manipulation.