Man Industries shares fell nearly 16% intraday on Tuesday after the market regulator, the Securities and Exchange Board of India (SEBI), barred the company and its top officials from accessing the securities markets for a period of two years.

The pipe manufacturer's shares fell to their lowest levels since May, despite management clarifying that this regulatory move does not impact their operations. It stated that it continues to have a strong order book of ₹ 4,700 crore and is fully operational.

"The Company does not engage in any trading activity in securities markets, and therefore, the directions relating to restrain from accessing the securities market have no impact on its core business operations," Man Industries said in an exchange filing.

Regulatory Setback 

On Monday, SEBI issued an order barring Man Industries and its three executives, including the company's chairman, Ramesh Mansukhani, managing director, Nikhil Mansukhani, and former finance chief, Ashok Gupta, from the securities market. 

The order noted that Man Industries deliberately misstated its financial statements from 2015-16 to 2020-21, excluding a subsidiary from consolidation to suppress losses and artificially inflate profits. These issues involved the non-consolidation of subsidiary Merino Shelters from FY15 to FY21, as well as minor compliance lapses. However, the company started consolidating financials from FY23-24.

The market regulator has sought a penalty of ₹25 lakh from each of them. 

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment has been 'neutral' on this counter for a week. 

Ace investor Ashish Kacholia held a 1.82% stake in the company as of early September. Man Industries' shares have risen 11% year-to-date (YTD). 

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