Prakash Industries soars over 5% after Sebi revokes ‘Shell Co’ status

Shares of Prakash Industries gained over 5 per cent and scaled their fresh 52-week high of Rs 184 in morning trade on Tuesday after market regulator Securities and Exchange Board of India (Sebi) on Friday lifted the curbs imposed on Prakash Industries, which was in the list of 331 suspected shell companies, after finding no "prima facie evidence" of misrepresentation of financials.

The scrip was trading 5.21 per cent up at Rs 179.70 at around 10.30 am (IST). Shares of the company opened at Rs 184 and touched a high and low of Rs 184 and Rs 176.45, respectively, in trade so far. Benchmark BSE Sensex was almost flat at 33,932, down 8 points against its previous close.

"In absence of prima facie evidence/ suspicion of misrepresentation of financials/ business by the company (Prakash Industries), misuse of the books of accounts / funds of the company or violation of LODR (Listing Obligation and Disclosure Requirements) Regulations, there is no reasonable ground to further verify the financials of the company warranting an audit," Sebi said in an order.

Sebi also said that it is of the considered view that the actions envisaged in Sebi's letter dated August 7 against Prakash Industries are liable to be revoked.

On the BSE, 2.69 lakh shares were traded in the counter so far, compared with average daily volumes of 5.46 lakh shares in the past two weeks.