Stock manipulation: Vipul

https://www.moneylife.in/article/stock-manipulation-vipul/41248.html

Stock manipulation: Vipul

16 April 2015

Moneylife

Over the past one year, the stock price of Vipul shot up by 883%. Even though nearly 35% of the promoters’ shares is pledged, this does not appear to be a concern for the regulator Present on the S&P BSE Small Cap index, Vipul Ltd generates revenue from the construction and development of real estate. Over the past four quarters, this small-cap stock has generated total revenue of Rs267 crore and a net loss of Rs3.68 crore. The stock was thinly traded until a year back, with a turnover of about Rs1,000 per day in February 2014. However, the trading turnover shot up to over Rs10 lakh a day in February 2015. Over the past one year, the stock price has shot up by 883% to Rs45.90 on 1 April 2015 from Rs4.67 on 25 March 2014. Nearly 35% of the promoters’ shares have been pledged to multiple finance institutions to secure loans. The steep rise in the stock price and the high quantity of pledged shares do not appear to be a concern for the regulator.

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