Stock manipulation: Rajkumar Forge
Moneylife Digital Team 24 May 2017

Rajkumar Forge manufactures medium and heavy open-die forgings for the oil, gas, power, iron, steel, sugar, cement, chemicals, fertiliser and general engineering industries. It claims to be one of the leading exporters of critical forgings and has a presence in South East Asian markets.

 

According to Watchout Investors, in 2007, the company did not comply with the listing agreement of the BSE and was suspended from trading. The suspension was later revoked. In the same year, a penalty of Rs1 lakh was also levied on the company for delay in making disclosures of shareholding and changes in shareholding. The promoters hold only 3.5% shares in the company which is unusually low. The net sales for the December 2016 quarter fell by 57% year-on-year, from Rs2.61 crore in the December 2015 quarter to Rs1.13 crore in the December 2016 quarter.

 

Over the past eight quarters, sales have been stagnant. The company reported a net loss Rs0.52 crore in the December 2015 quarter and a loss of Rs1.41 crore in the December 2016 quarter. Yet, the stock price shot up 315%, from Rs15.05 on 27 March 2015 to Rs62.45 on 17 May 2017. Does anybody know why?  

Comments
Suhas Kothavale
4 years ago
Stock manipulation: Rajkumar Forge this company is my family's company , the stake of family was 75 % last year. It was run by my uncle Rajkumar Kothavale. Because of his old age, he is not able to run the project properly & now nobody is there to look after it since 4-5 years. So the company is taken over by Wester Forging Pvt.LTD, run by Jindal. We have sold our stake to him for Rs 32.50 which was almost double the market price & requested shareholder to sell their shares to Western Forging. The company will go delisting after 2 years as target company is Pvt.Ltd. The share price is increased due to this.
Amit Anam
4 years ago
this is the same co which sold its half an acre land at pune at a paltry sum of 11 lakhs in 2014-15
Amit Anam
4 years ago
this is the same co which sold its half an acre land at pune at a paltry sum of 11 lakhs in 2014-15
Kris Lakshmikanth
4 years ago
Obviously, there is circular trading going on.
Free Helpline
Legal Credit
Feedback