The company made its debut at the bourses in September 2022 and became a favorite among investors, thanks to its multibagger returns. Just four months after the listing, the shares jumped to Rs 1,602 as against an offer price of Rs 122.
However, as concerns surfaced over manipulation in financials and misuse of net proceeds, the slide was rapid. The company had denied all the allegations from time to time.
A week ago, Sebi found that the company allegedly misused its IPO proceeds and used dubious transactions to paint a false picture of good financial health and promising growth prospects to the general public.
The regulator, which initiated the probe after news items and social media posts raised concerns regarding the company’s financial statements and corporate announcements, banned Varanium Cloud and its promoter Harshawardhan Hanmant Sabale from the capital markets with immediate effect.According to the order, promoter Harshawardhan Hanmant Sabale through public announcements, created a positive narrative that induced a large number of retail investors into purchasing the stock.In its effort to present such a picture, Varanium and its promoter entered into transactions that appeared only on paper and nothing was happening on the ground as claimed by the company.Further, Hanmant Sabale is restrained from acting as a Director or Key Managerial Personnel of any listed company or its subsidiary or any company which intends to raise money from the public or any Sebi registered intermediary, until further orders.
Formerly known as Streamcast Cloud Pvt Ltd, Varanium Cloud claims to deliver cutting-edge digital, technology and internet services in tier two cities.
The company’s platform is said to enable a positive effect on education, economic growth and employment by accelerating rural townships into a more digital-focused community.