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The Securities and Exchange Board of India (Sebi) has barred six preferential allottees of Dhenu Buildcon Infra Ltd (DBIL) from disposing of their company shares after finding prima facie evidence of fund round-tripping involving purported loans of INR 1,000 crore. The regulator said the company received the amount through 46 transactions involving seven entities, but bank records indicated that the funds originated from an initial pool of just INR 25 crore. Sebi said INR 840 crore was later converted into equity, with the six allottees holding about 99.70 per cent of DBIL’s diluted equity share capital.
The Securities and Exchange Board of India (Sebi) has barred six preferential allottees of Dhenu Buildcon Infra Ltd from selling or disposing of their shares after finding prima facie evidence of round-tripping of funds involving purported loans of INR 1,000 crore.
In its interim order, Sebi said Dhenu Buildcon Infra had purportedly received INR 1,000 crore from seven entities through 46 transactions over eight days in December 2024. However, an examination of the company's bank accounts showed that the amount was not supported by corresponding fresh inflows from independent external sources.
According to the regulator, an initial pool of INR 25 crore was repeatedly circulated through multiple entities and eventually returned to Dhenu Buildcon Infra through different routes. This created the appearance that the company had received aggregate loans of INR 1,000 crore.
Sebi said INR 840 crore of the purported loans was subsequently converted into equity through a preferential allotment of 5,91,54,92,940 equity shares.
The six allottees are Golkonda Aluminium Extrusions, Shanta Agencies, Shri Niwas Leasing and Finance, Tiaan Consumer, Twinkle Mercantiles & Credits and Utsav Securities. Together, they hold around 99.70 per cent of DBIL's diluted equity share capital.
Based on the three-month volume-weighted average price (VWAP) before July 31, 2026, Sebi estimated the market value of the preferentially allotted shares at around INR 5,667.04 crore.
The regulator's intervention came after the lock-in period for the shares expired on August 15. Sebi said some of the allottees subsequently started selling their holdings. The six entities collectively sold 17,444 shares worth INR 1.34 lakh over two days.
Sebi said permitting further sale of the shares at prevailing market prices could potentially lead to wrongful gains of around INR 5,667 crore at the expense of investors.
The regulator also identified Virendra Jain and Surendra Jain as key participants allegedly involved in the arrangement. Sebi said the two were prima facie involved in establishing and maintaining a network of connected entities, exercising operational and financial control, arranging banking facilities and transferring funds.
Based on its findings, Sebi prohibited the six allottees from disposing of their DBIL shares. It also barred Virendra Jain and Surendra Jain from buying, selling or dealing in securities and from associating with the securities market until further orders.
Sebi has also directed Dhenu Buildcon Infra not to undertake corporate actions that could alter its capital structure. These include bonus issues, rights issues, stock splits and dividend-related actions, until further orders.
The regulator began its examination following a reference received from the Serious Fraud Investigation Office on April 20, 2026, to determine whether market regulations had been violated in connection with DBIL.
The examination covered the period from August 1, 2024, to July 31, 2026. Sebi's latest action is interim in nature and forms part of the ongoing regulatory proceedings.
Source PTI
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