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In an interim ex-parte order, the regulator has directed Sharma and four other individuals to return ₹51 crore of illegal gains.
Sebi’s investigation found that Elitecon’s stock witnessed an extraordinary surge – from around ₹11in August 2024 to a peak of ₹629 in June 2025 – despite negligible trading activity in prior years. The rally was followed by a sharp fall to about ₹58 by February 2026, indicating a classic ‘pump-and-dump’ pattern.
The regulator observed that promoter Vipin Sharma and connected entities offloaded substantial shares during peak price phases, accounting for a significant portion of market selling. Selling activity paused during lock-in periods and resumed once restrictions were lifted.
The order also flagged a dramatic expansion in the company’s share capital – over 1,500 times between 2019 and 2025 – through preferential allotments, warrant conversions and a stock split.
During the same period, the number of public shareholders surged over 100-fold, pointing to increased retail participation amid inflated valuations.
Sebi raised serious concerns over disclosure lapses. The company allegedly failed to promptly disclose GST demands of over ₹400 crore-nearly 22 times its average profits – and did not inform exchanges about its registered office being sealed by authorities.
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https://economictimes.indiatimes.com/markets/stocks/news/sebi-bars-elitecon-and-promoter-for-alleged-price-manipulation/articleshow/129938653.cms
