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  • Wakefit Rolls Out IPO Plans, Targets to Raise INR 468 Cr

    Wakefit Innovations Ltd, a home and furnishings company, has submitted preliminary documents to the Securities and Exchange Board (Sebi) requesting permission to acquire capital through an initial public offering (IPO).

    According to the draft red herring prospectus (DRHP) submitted on June 26, the planned IPO of the Bengaluru-based company consists of an offer for sale (OFS) of 5.84 crore equity shares by the selling shareholders, along with a fresh issue of equity shares totalling up to INR 468.2 crore.

    Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund are among the selling shareholders as part of the OFS, along with the promoters Ankit Garg and Chaitanya Ramalingegowda.

    How Wakefit Plans to Utilise Proceeds?

    Wakefit plans to use the INR 82 crore proceeds from the new issue to open 117 new COCO Regular Stores and one COCO Jumbo Store; INR 15.4 crore to buy new machinery and equipment; and INR 145 crore to pay license fees and lease and sublease rent for already-existing stores.

    The remaining sum would be utilised for regular business operations. In addition, INR 108.4 crore will go towards marketing and advertising costs to raise brand awareness and visibility.

    Additionally, the business might think about doing a pre-IPO placement of up to INR 93.6 crore. By implementing such a placement, the size of the fresh issue will be reduced.

    Wakefit’s Products and Business Operations

    Founded in 2016, Wakefit is one of the newest domestic companies in India’s home and furniture industry. The company distributes a variety of mattresses, furniture, and furnishings through both internal and external channels, including a number of marketplaces like multi-branded stores and major e-commerce platforms.

    Its full-stack vertical integration allows it to manage all facets of business operations, from product conception, design, and engineering to manufacturing, distribution, and customer experience and engagement.

    Two of Wakefit’s five manufacturing facilities are located in Bengaluru, Karnataka; the other two are in Hosur, Tamil Nadu; and the fifth is in Sonipat, Haryana.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

    Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

    This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    With solid institutional support and a broad range of digital payment and issuance tools designed for India’s quickly digitising commerce sector, Pine Labs’ initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.

  • Pine Labs Seeks INR 2,600 Cr via IPO, Files DRHP Papers with SEBI

    According to people familiar with the situation, the fintech unicorn Pine Labs filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 26.

    According to a media report, the company intends to raise up to INR 2,600 crore ($304 million) through a new share offering, while current investors such as PayPal, Mastercard, Peak XV Partners, and Macritchie Investments will sell up to 14.78 crore (147.8 million) shares.

    The proceeds of the new issuance will be utilised to pay down debt and make investments in companies including Pine Payment Solutions Malaysia, Pine Labs UAE, and Qwikcilver Singapore, in accordance with the DRHP.

    Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies to Manage Offerings

    The business might potentially think about placing shares up to INR 520 crore before the IPO. Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies are managing the offering.

    This represents a significant departure from its previous discussions since last year, when Pine Labs was allegedly considering an IPO of $1 billion (INR 8,300 crore). Pine Labs, which was last valued at $5 billion when it raised money in 2022, was granted permission in April to relocate its headquarters from Singapore to India.

    The platform has been branching out into other industries, such as online payments (Fave), Buy Now Pay Later (BNPL), invoice management, and gifting solutions, enabling merchants to diversify revenue sources. Its primary focus is on offline payments through Point of Sale (PoS) terminals.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

    Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

    This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    With solid institutional support and a broad range of digital payment and issuance tools designed for India’s quickly digitising commerce sector, Pine Labs’ initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.

  • Regulator Strikes: SEBI Penalizes BSE INR 25 Lakh for Norm Violations

    For failing to give all stakeholders equitable access to corporate filings and to take action against brokers who make frequent changes during trading, capital markets regulator SEBI fined the BSE INR 25 lakh on 25 June.

    Following an inspection that took place between February 2021 and September 2022, the market regulator issued the order. SEBI ruled in a 45-page ruling that BSE had violated standards by allowing its paid clients and internal listing compliance monitoring (LCM) staff to view business announcements before they were posted on its website.

    In order to preserve market integrity and avoid unfair information advantages, the regulator also noted that the data dissemination procedure lacked controls to guarantee simultaneous and equal access to all players.

    SEBI Notifies Various Shortcomings of BSE

    The Securities Contracts (Regulation) SECC (Stock Exchange and Clearing Corporations) Regulations, 2018, which require stock exchanges to provide equitable and transparent access to all users, were broken by BSE, according to SEBI’s remark.

     Additionally, it pointed out that the BSE failed to set up a really basic syndication (RSS) feed, which would have reduced the possibility of unequal access to company filings. SEBI held that such corrective action was only done after the examination revealed shortcomings, even if the exchange later created a time gap to remedy the matter.

    SEBI also pointed out significant flaws in BSE’s oversight of client code changes, which are only allowed when there are actual mistakes.

    Concerns regarding potential abuse and a lack of due diligence in trades between unaffiliated institutional clients were raised by the BSE’s failure to take disciplinary action against brokers who made frequent adjustments and ‘error accounts’.

    Comments Made by SEBI’s Quasi Judicial Authority Santosh Shukla

    In the ruling, Santosh Shukla, SEBI’s quasi-judicial authority, stated that stock exchanges play a crucial role as the initial line of supervision when managing materially price-sensitive information concerning listed firms and their securities.

    In order to maintain compliance with its responsibilities as a leading, internationally renowned stock exchange, BSE must have internal controls over how to handle and manage such corporate announcements.

    Shukla stated that the concept of impartiality, transparency, and fairness in information dissemination from the first-level regulator BSE has been significantly compromised by the availability of information about listed companies to LCM employees of BSE and its paid subscribers prior to its release to general investors through its website.

    Additionally, he argued, BSE has demonstrated carelessness and laxity in failing to enforce standards regarding client code modifications.

  • Lenskart Aims for the Spotlight: IPO DRHP Filing Expected in Early July

    In the first two weeks of July, the unicorn in the eyewear industry, Lenskart, will file DRHP for its IPO. It will opt for a public DRHP rather than the confidential DRHP route.

    Lenskart is choosing full public disclosure over the confidential IPO filing path with the Securities and Exchange Board of India (SEBI), which is what several of its competitors, such as Swiggy, Groww, Meesho, PhysicsWallah, and Boat, have chosen.

    The confidential route gives businesses flexibility and protection during the pre-IPO stage while preserving the privacy of sensitive business information during early regulatory examinations.

    A public file, on the other hand, instantly makes the DRHP available to the public, exposing all financial data, corporate specifics, and strategic intentions to inspection. Lenskart’s decision to be transparent points to a solid and planned business strategy.

    Massive IPO Plan Marking Lenskart’s Valuation at $10 Billion

    According to reports, Lenskart is getting ready for a big $1 billion IPO with a $10 billion valuation target. Its tremendous development and market leadership are reflected in this aim, which is almost twice its prior private market valuation.

    A group of top investment banks, including Kotak, Axis Capital, Citi, Morgan Stanley, and Avendus, have joined forces with Lenskart to oversee this massive IPO.

    The company’s confidence stems from its growing global footprint and its leading position in the Indian omnichannel eyewear market.

    Lenskart has a distinct competitive advantage because it presently has no direct competitors in the new economy sector, and Titan Eye Plus, its closest listed competitor, works on a much smaller scale.

    Financial Dynamics of Lenskart

    With a sales base of INR 5,427.7 crore, the company posted a loss of INR 10.15 crore in FY24. Despite being a loss, it greatly reduced losses by 84% when compared to FY23’s INR 63.7 crore, indicating a concentration on both expansion and strict financial control.

    An excellent measure of the company’s market penetration is the revenue growth of 43.2% in FY24 compared to FY23. The company has not yet released its financial results for FY25.

    Lenskart, which was founded by Peyush and Neha Bansal, Amit Chaudhary, Ramneek Khurana, and Sumeet Kapahi, has grown outside of India. Japan, Singapore, and the United Arab Emirates are among the important foreign markets in which it works.

    The business has made significant investments in international growth, including the purchase of the majority of the Japanese eyewear company OWNDAYS, which was estimated to be worth $400 million in 2023.

    With ambitions to create up to 400 new stores in Southeast Asian nations over the next two years, this calculated move intends to further establish the company as a global leader in eyeglasses.

    In Hyderabad, Telangana, Lenskart just started construction of the biggest eyewear facility in the world, which will serve both the domestic and international markets.

    ADIA, ChrysCapital, SoftBank, Alpha Wave, Temasek, and Fidelity are just a few of the well-known investors that have helped Lenskart collect more than $1 billion in capital to date, demonstrating their tremendous faith in the company’s business plan and future growth.

  • Startup Dreams Get a Lift: SEBI Relaxes IPO, Reverse-Flipping Norms

    The Securities and Exchange Board of India (SEBI) announced a number of initiatives on 18 June to promote more companies listing on the stock exchanges after reverse flipping to India.

    These new initiatives lessen the burden of compliance in the stock market ecosystem, and permit increased foreign investment in government bonds.

    The rule that prevents start-up founders and promoters from holding Employee Stock Options (ESOPs) and other share-based rewards when they file their draft red herring prospectus (DRHP) for a public share offering was also abandoned by the market watchdog.

    While SEBI has prohibited new ESOP issuances in the lead-up to the filing, it has permitted promoters to retain existing ESOPs that were issued a year before the filing of their DRHP.

    Scrapping the Rule for Compulsorily Convertible Securities

    The Board also eliminated a requirement mandating investors in fully paid-up Compulsorily Convertible Securities (CCS) to retain shares resulting from the conversion of such securities for at least a year during its meeting, which was chaired by Tuhin Kanta Pandey.

    According to the Board, this has prevented some investors from taking part in the public offering of the offer for sale. Companies considering reverse flipping—the practice of shifting a company’s domicile from a foreign country to India in order to allow domestic listing—will benefit from these regulatory changes.

    Additionally, SEBI permitted shares owned by public financial institutions, alternative investment funds (AIFs), and overseas ventures to be included in the minimum promoter contribution needed for a public offering.

    SEBI chairman Pandey stated that the regulator has established a working group to investigate the unbundling of charges by clearing corporations, despite the fact that clearing firms were not formally on the board’s agenda.

    The head of SEBI stated that these fees must be revealed to investors and cannot be a “black box”.

    In contrast to the previous position, when the regulator had considered separating clearing firms from parent exchanges, he stressed that the ownership structure of clearing corporations will remain unchanged.

    Easing Out Other Rules Making a Wider Road For Startups

    Additionally, SEBI has loosened the regulations governing the delisting of public sector enterprises (PSUs) with more than 90% government ownership. According to Pandey, the exemption will help around five listed PSUs and won’t apply to banks, NBFCs, or insurance businesses.

    A distinct category for foreign portfolio investors (FPIs) to invest in government securities (gsecs) was also introduced by the market regulator. KYC rules for these investors will be eased, much like the RBI’s. Additionally, these FPIs will receive a longer period of time to notify major changes and respite from making granular disclosures.

    Additionally, SEBI authorised modifications to the rules regulating angel funds, started talks on loosening accreditation, and permitted Category-I and -II AIFs to create co-investment vehicles. Furthermore, the board retracted its December 2024 ruling that mandated merchant bankers and other regulated firms divide their non-core or non-regulated activity into distinct entities.

    It will be possible for merchant bankers to carry on with their operations that are governed by other financial authorities. However, if the aforementioned conduct is unregulated, like in an unlisted market, merchant bankers will have to tell their clients.

    A payment plan for brokers implicated in the National Spot Exchange (NSEL) scam has also been approved by the SEBI board. Furthermore, a venture capital fund settlement plan has been unveiled.

    Additionally, before the DRHP was filed, the market regulator required that the shares of several important shareholders, including senior management, be dematerialised.

    The eligibility requirements for listing on social stock exchanges and other standards for investment advisors and real estate investment trusts were also loosened by SEBI. Additionally, the market regulator made disclosure paperwork easier to understand for portfolio managers.

  • SEBI Cracks Down: Sanjiv Bhasin, 11 Others Banned; INR 11.4 Crore Impounded

    Market commentator Sanjiv Bhasin and eleven other individuals and firms have been banned by the Securities and Exchange Board (SEBI), which oversees capital markets, for engaging in front-running and manipulating the market.

    Additionally, the regulator has ordered that these parties forfeit more than INR 11.4 crore in illegal earnings that were purportedly obtained from these crimes.

    These persons have participated in market manipulation through stock recommendations made on television channels and various social media platforms, according to SEBI’s 149-page interim ex-parte order issued on 17 June.

    Bhasin, his cousin Lalit Bhasin, Lalit’s brother-in-law Ashish Kapur, and other family members, dealers, and associated businesses, including Bhasin’s RRB Master Securities, Delhi, are among the 12 noticees who have been prohibited from using the securities market.

    Additionally, they are not allowed to purchase, sell, or deal in securities in any way, either directly or indirectly. Additionally, SEBI stated in the ruling that their bank and demat accounts had been frozen as a result of the purportedly illegal gains.

    What SEBI’s Order States?

    In the 149-page order passed by whole-time member Kamlesh C Varshney, SEBI stated that the total amount of unlawful gains earned from the alleged violations, which is INR 11,37,19,170, will be impounded jointly and severally.

    The noticees are directed to open fixed deposit accounts in a scheduled commercial bank to credit/deposit the aforementioned amount of unlawful gains jointly and severally with a lien marked in favour of SEBI.

    The amount kept in the accounts will not be released without SEBI’s permission. Bhasin, noticee 1, has been told by Sebi to save the records of his several social media accounts until further instructions are given.

    Additionally, it stated that the noticees must not sell or alienate any of their assets or properties until the amount of their illegal earnings has been credited to fixed deposit accounts, unless SEBI has granted them prior authorisation.

    Accused Ordered to Provide Details of Movable and Immovable Assets

    Additionally, the accused have been ordered to submit a comprehensive list of all of their assets, both immovable and movable. They can ask for a personal hearing and have 21 days from the date of order receipt to submit responses to SEBI. Bhasin, a director at IIFL Securities, reportedly traded through the broker RRB Master Securities, Delhi, according to SEBI’s probe.

    He would first purchase assets for himself before recommending them to the general public via the IIFL Telegram channel and/or news outlets like Zed Business and ET Now. Bhasin would sell these securities and turn a profit after their prices increased as a result of his advice. SEBI came to the conclusion that he made “ill-gotten gains” by manipulating security prices.

    In contrast to his own suggestions made on media outlets throughout the investigation period, the SEBI probe discovered that he traded through RRB Master Securities in the accounts of its clients Venus Portfolios, Gemini Portfolios, and HB Stock Holdings.

    In the accounts of Venus, Gemini, and HB, Bhasin would square off his positions (mostly sell), frequently in a matter of minutes, through dealers of RRB Master, even though he was mostly giving “buy” recommendations to viewers/followers on media channels and other platforms.

    According to the evidence, he would stay in constant communication with dealers and instruct them to follow buy/sell orders right away, as stated in the order.

  • Vishal Mega Mart Shares Tumble 8% Following Massive INR 10,488 Crore Block Deal

    Following a significant block transaction by its promoter company, Samayat Services LLP, Vishal Mega Mart shares dropped 4% on June 17. Through a block sale of INR 10,000–10,500 crore, Samayat Services LLP, supported by Partners Group and Kedaara Capital, sold off about 20% of its equity, lowering the promoter ownership from 74.5% to roughly 55–60%.

    The transaction, which took place soon after the pre-IPO lock-in period ended, suggests a calculated withdrawal by private equity investors, according to SEBI-registered analyst A&Y Market Research.

    In India, Vishal Mega Mart is a multifaceted retailer that mostly functions as a chain of hypermarkets. Their main focus is on offering middle-class and lower-middle-class consumers a large selection of goods at reasonable costs.

    They sell goods under the headings of clothing, general merchandise, and fast-moving consumer goods (FMCG), which includes household necessities, consumables, and personal care products.

    Significant Shift in Company’s Ownership Structure

    The ownership structure of the business has undergone a significant change, even though promoters still possess a majority share.

    After successfully retesting the INR 114 support level, Vishal Mega Mart has surged higher on good volumes, indicating bullish momentum, according to A&Y Market Research.

    Buyer strength above INR 115 was confirmed by the stock’s extended upward trend. A&Y Market Research has recommended setting a stop-loss at INR 113 and has set mid- to-long-term goals for the stock at INR 133, INR 140, and INR 146.

    Thumping Performance in FY25

    Driven by aggressive expansion and robust consumer demand, Vishal Mega Mart produced a strong operational performance in FY25. With revenues up 23% year over year and net profit up 88%, the company’s financial performance in Q4 FY25 was strong.

    With the addition of 85 more stores throughout the year, including 28 in Q4 alone, the company now has 696 locations in 458 cities. The gain in same-store sales was equally significant, averaging 11.8% for the entire year and 13.4% for the fourth quarter.

    According to A&Y Market Research, return measures are still strong, with return on equity (ROE) hovering around 8% and return on capital employed (ROCE) above 11%. But the research firm highlighted that the bloated valuations are still a problem.

    There is little margin for mistake because the company trades at a high 92x price-to-earnings (P/E) and 9x price-to-book (P/B) ratio. Furthermore, historical margin volatility—particularly in FY24—may raise concerns for investors who are risk averse.

    The A&Y Market Research has advised traders to keep an eye on the company’s FII/DII activities, clues about promoter reinvestment, and general emotions. Retail sentiment turned “extremely bullish” amid “extremely high” message volumes, according to data from Stocktwits.

  • SEBI Unveils ‘Valid’: UPI Fraud Buster for Safer Market Deals

    After considering industry input from consultations and evaluating market participants’ preparedness, regulator SEBI announced the “Valid” mechanism on June 11, which will give market intermediaries a unique Unified Payments Interface (UPI) address to collect money from clients.

    According to Tuhin Kanta Pandey, Chairman of SEBI, the innovative UPI payment system will launch on October 1, 2025. According to Pandey, by offering a validated and secure payment channel, this novel mechanism is expected to greatly increase the security and accessibility of financial transactions inside the securities market.

    Market intermediaries can use SEBI’s special and secure investor payment system, called “Valid”, to collect money from customers for payments to brokers, mutual funds, research analysts, investment advisers, and other parties.

    SEBI Issuing Circular Asking Intermediaries to Promote Valid Among Their Investors

    The SEBI has released a circular on the subject, stating that although investors will not be required to use this structured UPI method, intermediaries must acquire and provide their investors with this structured UPI address.

    Furthermore, it is recommended and encouraged for intermediaries to actively support and facilitate their investors’ adoption of this technique. Banks only issue “Valid”, a distinct payment ID based on the Unified Payments Interface (UPI), to organisations that are registered with SEBI. To make it easier for investors to identify the regulated entities, their UPI IDs will contain the handle name “@valid” along with the bank name.

    To demonstrate the authenticity of the transaction, a triangle with a green thumbs-up emblem will also be highlighted. For instance, the handle would be abc.brk@validhdfc if it was for a broker named ABC and funds were to be collected using HDFC Bank’s UPI platform. Likewise, it will be abc.mf@validhdfc for a mutual fund.

    After consulting with banks, the National Payments Corporation of India (NPCI), and market participants such as brokers, the regulator created the “Valid” payment mechanism. The system protects investors from scammers and guarantees that they only pay to legitimate SEBI-registered businesses.

    Because there won’t be any fraud, both registered entities and investors will benefit. Intermediaries will be paid more quickly, and investors will know they are paying a legitimately regulated company. For capital market transactions conducted using UPI, the market regulator has set a daily cap of Rs 5 lakh, which may be periodically reviewed in cooperation with the NPCI.

     In 2019, the Unified Payments Interface (UPI) was first made available to the public as a payment method by SEBI. Because of UPI’s effectiveness and great track record, it has been incorporated into numerous other procedures.

    Move will Curb Unregistered Entities

    In its consultation paper, the regulator said that numerous unregistered businesses had deceived investors over the years by collecting money without authorisation, most of which was then syphoned off for their own personal benefit.

    In order to allow investors to find a SEBI-registered intermediary and make the necessary payments to them in a more practical, effective, and lawful manner, it felt the need to aggressively limit the growth of unregistered firms.

    In an effort to further empower investors, SEBI also unveiled the “SEBI Check” tool. “SEBI Check” is a new feature that SEBI is creating. With the use of this new technology, investors will be able to confirm the bank details, including the IFSC and bank account number of a registered intermediary, and validate the authenticity of UPI IDs by manually entering the UPI ID or scanning a QR code.

     It is anticipated that this new system will provide important advantages such as improved investor protection, an additional layer of security, and the ability for investors to confirm an entity’s legitimacy prior to making any financial transactions.

  • Capillary Technologies Secures Board Approval for INR 2250 Cr IPO Launch

    The board has given Capillary Technologies permission to raise INR 2,250 Cr, or about $263 million, through an initial public offering (IPO).

    In accordance with regulatory filings, the Warburg Pincus-backed business intends to raise INR 500 Cr through the issuing of new shares and will also have an offer for sale (OFS) component of INR 1,750 Cr, wherein some of its owners may dilute their shareholding.

    The plan to generate the aforementioned amounts through an initial public offering (IPO) was accepted by Capillary Technologies’ board on May 23. The choice must be approved by the company’s shareholders, though.

    In January, a media outlet revealed that Capillary Technologies intended to submit its draft red herring prospectus (DRHP) to SEBI, the market watchdog, by June in order to raise $200 million through an initial public offering (IPO).

    The Bengaluru-based company was aiming for a listing valuation of $500 million to $1 billion at the time, according to sources. It was not possible to determine the precise date of its mainboard listing.

    According to the company’s most recent regulatory statement, it might also think about raising more money in a pre-IPO deal.

    Second Attempt to go Public

    Capillary has already tried to list in India. The SaaS business first submitted a DRHP for an INR 850 Cr IPO in 2021, but it later abandoned the plans as the markets became unstable.

    Although the company has not yet released its FY25 financial results, according to records obtained from Tofler, its operating revenue increased by 80% year over year to INR 600 Cr in FY24, while its net loss decreased by 33% year over year to INR 59 Cr.

    At a time when over 20 cutting-edge digital businesses are getting ready to go public in 2025 due to high investor demand, Capillary has brought back its IPO ambitions. Shiprocket, PhysicsWallah, Groww, and boAt are among them; throughout the last few months, they have all submitted confidential IPO documents to SEBI.

    In the upcoming six months, it is anticipated that companies such as Urban Company, BlueStone, Avanse Financial Services, Smartworks, IndiQube, and ArisInfra would also go public. In addition, companies like OfBusiness, Pine Labs, Razorpay, PhonePe, and Lenskart are stepping up their preparations for possible initial public offerings.

    Capillary Technologies Operations and Clientele

    Capillary Technologies, which was founded in 2008 by Aneesh Reddy, Ajay Modani, and Krishna Mehra, offers software for client engagement and loyalty. Among its customers are Domino’s, Indigo, Tata Group, and Aditya Birla Group.

    Reddy is still the company’s top boss, even though Modani and Mehra have already left. Capillary asserts that it is present in foreign markets like the US, MENA, and Southeast Asia in addition to India. It closed its Series D financing at $140 million last year.

    About $95 million of its funding was made up of secondary deals, which allowed new investors to join the cap table while also providing partial exits to current investors and former workers.

    Among the well-known firms supporting Capillary are Qualcomm Ventures, American Express Ventures, Norwest Venture Partners, Avataar Ventures, Filter Capital, InnoVen Capital, and Peak XV Partners.

  • SEBI Slaps Market Ban on Actor Arshad Warsi, 58 Others for Up to 5 Years

    In a case involving deceptive YouTube videos suggesting that investors purchase shares of Sadhna Broadcast, markets regulator SEBI has banned Bollywood star Arshad Warsi, his wife Maria Goretti, and 57 other businesses from the securities markets for a period of one to five years.

    Warsi and his wife, Maria, were fined INR 5 lakh apiece by the authority. According to an order issued by SEBI on May 29, the markets watchdog banned the pair from the securities market for a year.

     SEBI has also fined 57 additional companies, including the promoters of Sadhna Broadcast (now Crystal Business System Ltd.), between INR 5 lakh and NR 5 crore.

    SEBI Putting a Strict Scanner

    In addition to debarring these 59 organisations, SEBI ordered them to pay all unlawful gains totalling INR 58.01 crore, plus 12% annual interest, jointly and severally, from the conclusion of the inquiry period to the actual payment date.

    According to SEBI, Arshad and his spouse made INR 41.70 lakh and INR 50.35 lakh, respectively. In the end, SEBI discovered that Manish Mishra, Rakesh Kumar Gupta, and Gaurav Gupta were the masterminds behind the entire scheme. According to the ruling, Subhash Aggarwal, who was also a director of Sadhna Broadcast Ltd’s (SBL) RTA, served as a liaison between Manish Mishra and the promoters.

     As per SEBI, these people were the main players who devised and carried out the deceptive strategy. The regulator further noted that Lokesh Shah and Peeyush Agarwal enabled accounts under their control to be used for Manish Mishra’s and SBL’s promoters’ deceptive schemes.

    The latter owned the stockbroker’s Delhi franchise, while the former was a dealer at Choice. Both of them were essential components that made it easier to manipulate the script on a broad scale.

    According to the ruling, Jatin Shah was instrumental in putting the plan into action, while other organisations helped to assist the deceptive ideas or were involved for financial gain.

    SEBI stated in the 109-page order that although the noticees (entities) did not trade in the scrip from their own accounts, they had either helped place the manipulative trades or served as information carriers.

    SEBI’s Explanation of the Misconduct

    SEBI claimed that the planned plan was carried out in two well-coordinated stages. In order to gradually raise the scrip’s price and provide the impression that there was market interest, related and promoter-linked firms carried out trades among themselves throughout the first phase.

    Due to low liquidity, these trades, with their frequently tiny volume, had a disproportionate effect on price, enabling the offenders to drive the scrip upward with comparatively little trading expenditure.

    The order stated that throughout the second phase of the scam, promotional and deceptive videos were distributed on YouTube channels run by Manish Mishra, including Moneywise, The Advisor, and Profit Yatra.

    It further stated that these videos, which were timed to correspond with and accentuate false market activity, portrayed SBL as a viable investment prospect. “A traditional pump-and-dump scheme has been exposed by the noticees’ overall behaviour.

    Ashwani Bhatia, a long-time member of SEBI, stated in the ruling that the price was “systematically pushed upward through collusive trading, followed by aggressive promotional activity to draw in retail investors, and finally, a coordinated sell-off by the promoters.”

     As a result, these 59 organisations broke the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations. Furthermore, SEBI stated that Varun Media Pvt Ltd, a promoter firm, is not facing any financial penalties as a result of ongoing insolvency proceedings.

    The disgorgement order will still be in effect, though, and the company’s actions will be decided by a different order.