Prashant Tiwari, a sub-broker at Motilal Oswal, has charged Debock Industries Limited with fabricating financial data. According to its official website, the Jaipur-based business, which was founded in 2007, operates in sales, marketing, and agricultural products. It also has interests in the hospitality sector.
According to a regulatory filing made on June 17, 2023, Debock Industries Limited has defaulted on a loan repayment to Punjab National Bank of more than Rs 450 lakh.
When the company’s shares on the National Stock Exchange (NSE) began to soar, Tiwari became interested in it.
According to NSE, Debock Industries closed on June 19 at Rs 15.00, in the red and down 0.99 percent.
According to NSE, the company reached its 52-week high at Rs 64.90.
According to the regulatory filing, it claimed to make an advance payment to suppliers of about Rs 130 lakh and has demonstrated a capital WIP of Rs 120.65 lakh through March 31, 2023.
“In Debock Industries’s unaudited financial results released in December 2022, the company showed a profit of around Rs 10 crore, while it defaulted a loan repayment of Rs 450 lakh. That is when I started getting suspicious,” Tiwari told Moneycontrol.
Tiwari looked into Debock Industries personally after investing part of his client’s money there. “The stock seemed like a profitable buy with a meagre market cap of Rs 180 crore, negligible debt, and reporting a robust quarterly profit ranging from Rs 5-10 crore,” continued Tiwari.
“After a holding period of eight months and no significant movement in stock price, my anticipation of the windfall was pegged on the annual result for FY 2022-2023,” he further added. However, “the result reported a sudden loss of Rs 10 crore and a loan default of Rs 4 crore and a significant cash crunch which the promoters tried to fund through the right issues of Rs 49 crore,” according to Tiwari.
“When I reached the corporate office and the manufacturing unit, I found it closed. The manufacturing units were also not operational,” Tiwari claimed.