Description

SEBI restrains Nirman Agri Genetics Limited from accessing securities market and restricts Pranav Kailas Bagal from trading in the scrip pending investigation into IPO fund utilization.

Summary

SEBI has issued an interim order (WTM/KV/CFID/CFID-SEC2/31724/2025-26) dated October 14, 2025, imposing immediate restrictions on Nirman Agri Genetics Limited and Pranav Kailas Bagal. The order stems from an investigation into the utilization of funds raised through IPOs in the SME segment managed by First Overseas Capital Ltd (FOCL) between May 01, 2022 to April 30, 2025. This examination was initiated following similar findings in the matter of Synoptics Technologies Limited.

Key Points

  • Nirman Agri Genetics Limited (PAN: AAHCN1021C) is completely restrained from accessing the securities market in any manner until further orders
  • Pranav Kailas Bagal (PAN: EHJPB8209L) is restrained from buying, selling or dealing in the scrip of Nirman Agri Genetics Limited, either directly or indirectly, until further orders
  • Pranav Kailas Bagal is permitted to settle pay-in and pay-out obligations for transactions completed before the close of trading on October 14, 2025
  • The company raised INR 20.30 Crore through its IPO in March 2023 and got listed on NSE’s SME platform “Emerge” on March 28, 2023
  • First Overseas Capital Ltd was the Lead Manager for the IPO
  • Investigation relates to potential misutilization of IPO proceeds, following similar modus operandi identified in Synoptics Technologies Limited case

Regulatory Changes

No new regulatory framework changes. This is an enforcement action under existing SEBI Act provisions - sub-sections (1) and (4) of section 11 and section 11B of the Securities and Exchange Board of India Act, 1992.

Compliance Requirements

  • NSE members must take note of the restrictions and ensure compliance
  • No transactions should be executed that would allow Nirman Agri Genetics Limited to access the securities market
  • Pranav Kailas Bagal must not be allowed to trade in NAGL scrip in any manner
  • Members can refer to the consolidated list of debarred entities at: https://www.nseindia.com/regulations/member-sebi-debarred-entities
  • For queries, members should contact: dl-invsg-all@nse.co.in

Important Dates

  • October 14, 2025: Date of SEBI interim order
  • October 14, 2025: Effective date of restrictions (transactions before close of trading on this date can be settled by Pranav Kailas Bagal)
  • March 28, 2023: Date of company’s listing on NSE Emerge platform
  • March 2023: IPO period
  • Until further orders: Duration of restrictions (indefinite pending final order)

Impact Assessment

Market Impact:

  • Complete halt in trading and market access for Nirman Agri Genetics Limited
  • Existing shareholders unable to exit positions through market transactions
  • Significant negative signal to SME segment investors regarding due diligence standards

Operational Impact:

  • Company cannot access capital markets for any fundraising activities
  • Corporate actions requiring market access are suspended
  • Reputational damage to the company and associated entities

Regulatory Implications:

  • Part of broader SEBI scrutiny of SME IPOs managed by First Overseas Capital Ltd during May 2022 to April 2025
  • Indicates heightened regulatory focus on fund utilization compliance in SME segment
  • May lead to increased due diligence requirements for future SME listings

Entity Details:

  • Nirman Agri Genetics Ltd is engaged in agriculture hybrid seeds, crop protection solutions, pesticides, and bio-organics products
  • Registered office: 3rd Floor, Samarth House, Opposite Titan World, Mahatma Nagar, Nashik, Maharashtra- 422005
  • Incorporated: August 2020

Impact Justification

SEBI has completely barred a listed company from accessing securities market and restricted a key individual from trading, indicating serious regulatory concerns related to IPO fund misutilization