Disclosure under Regulation 30(20) Order passed by SEBI dated 30.05.2025
Awaiting price reaction for this filing.
SEBI has passed a Confirmatory Order on May 30, 2025, continuing the restrictions from its earlier Ex-parte Interim Order dated February 11, 2025 against LS Industries and related entities. SEBI found prima facie evidence that the company was part of a manipulative scheme to defraud investors, with the share price rising over 10x from Rs. 22.50 to Rs. 267.50 between July and September 2024, touching a peak market cap of about Rs. 22,700 crore despite the company having negligible revenue and no active business. 99.66% of shares are held by just four entities, including promoter Profound Finance. LSIL remains barred from accessing the capital market or dealing in securities, while five other noticees (including an NRI shareholder and relatives of a proposed acquisition target's directors) are barred from trading in LSIL shares. The SEBI investigation timeline has been extended to November 15, 2025, and SEBI has advised BSE to take action against the company for allegedly making false submissions during trading resumption.
The trading restrictions on LSIL stock remain in force until further orders, and the unresolved investigation creates significant uncertainty for shareholders. With multiple key resignations at the company level (MD, CFO, Compliance Officer, Independent Director) and SEBI flagging possible false disclosures to BSE, the stock faces continued downside risk and may remain illiquid.