Internal fraud of Rs 2-2.5 cr detected, FIR filed against two employees

Fraud confirmedRegulatory & Legal View source PDF Explain this filing

SERVOTECH · price

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Price reactionminutes from the announcement price · days from the prior close

-0.7%Reaction day

₹97.36

prior close

₹95.80

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.4%-1.1% vs market

Other Electrical Equipment peers, median of 50sector-0.2%-0.5% vs sector

On the reaction day the stock moved 1.1 pts less than Nifty Microcap 250 and 0.5 pts less than its Other Electrical Equipment peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

+0.4

10m

-0.3

15m

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30m

-0.4

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-0.7+0.4-1.1-0.2-0.5

Next day

-1.8+1.8-3.6+0.2-2.0

-4.4+0.5-4.8-1.2-3.2

-5.3+0.9-6.2-1.3-4.0

-15.6+0.3-15.9-2.6-13.0

-11.7+1.4-13.1-0.9-10.8

-10.3+3.2-13.5+0.9-11.2

15d

-14.9+5.4-20.3-1.2-13.6

-15.7+6.4-22.0-2.6-13.0

-27.8+6.3-34.2-1.6-26.2

-35.8-3.6-32.2-14.5-21.3

UpDownMarket · Nifty Microcap 250Sector · Other Electrical Equipment peers, median of 50Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

The company has detected an internal fraud involving two employees and an external party. The fraud involved forgery of company tax invoices and unauthorized removal of physical inventory over a period of time. Estimated financial impact is around Rs 2-2.5 crores. A forensic auditor is being appointed to determine the final amount. FIR No. 429/2026 has been registered at Police Station Kundli, Sonipat, Haryana. The investigation is ongoing.

Likely market impact

Negative short-term sentiment but fraud value is relatively small. FIR filing shows governance. Investigation outcome remains key.