Stock manipulation: Yuranus Infrastructure
Moneylife Digital Team 27 September 2017
Yuranus Infrastructure Limited, formerly known as Pankhil Finlease Limited, was incorporated as a non-banking financial company (NBFC). Pankhil Finlease had got into quite a few legal and regulatory issues. The company and its directors were held guilty of default in filing annual returns in July 2008, October 2008 and April 2009 and charged a penalty in all the three cases as per The company’s website claims it wanted to act as promoters, organisers, developers and traders of real estate in every form. It surrendered its NBFC licence and changed the name to Yuranus Infrastructure Limited on 17 April 2012.
The average sales of the company in the past eight quarters were Rs5 lakh, while sales for the June 2017 quarter were Rs3 lakh. The average profit for the past eight quarters was Rs0.25 lakh. While the company made a loss of Rs8 lakh in the March 2017 quarter, it made a profit of Rs1 lakh in the June 2017 quarter. Despite such a poor performance, the price of the stock of Yuranus has shot up 268%, from Rs3.62 on 29 January 2016 to Rs13.31 on 14 September 2017. What makes this case more curious is that the promoter family has been exiting the company. On 2 September 2017, Dinesh Desai, the managing director, and Pankhil Desai, an executive director, resigned with immediate effect. In July 2015, Mayur Desai, an executive director from the same family, had resigned. Will the market regulator take a look at this brazen manipulation?
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