My head is spinning seeing some of the valuation of SME companies. I understand these are small companies with some potential but under disguise of "betting on promoters", valuations of these companies are above moon, IMHO. For ex, See Owais metals. Got listed just 3 months back at 275 levels. Today at 1500. I am surely not going to say that how a 80 crs revenue company is priced at 2700 crs Mcap, but I am sure the Investment Bankers/MB would know all of that while pricing the issue to perfection in March. What are investors betting on promoters who has raised 50 odd crs in IPO.? Another company "Kodytech". Saw when it got listed in Sept/Oct last yr. Found it over valued at that point of time itself. Raised some 30 crs. Listed at Rs 200. Now at Rs 3600 (20x in 9 months). A 2300 crs mcap Company in Software development doing 25 crs revenue. What are investors betting on?! All other companies should delist and list again. Afterall, other promoters are visionary as well! Can give so many examples. All of these will end very badly whenever the show ends.

Just now read the SEBI order against an SME company: Varanium Cloud Ltd and its promoter: Harshawardhan Sabale. The Order is a thrilling read into the tactics used by promoters in siphoning money from companies and a classic example of the pumping and dumping of stocks by the promoter. Total gain made by the promoter in this case: more than ₹160 cr. Let us see some of the key learnings from the case. Link to the order: sebi.gov.in/enforcement/orde… 1/n

Beat The Street Did It Again SEBI Takes Action Against VARANIUM CLOUD How Varanium Cloud take away shareholder's wealth and money into Cloud A thread on SEBI's action and revisit of our Forensic Findings #VaraniumCloud #SEBI #Forensic #Fraud #Redflag #CorporateGovernance

जो सफ़ाई बार बार दे उससे 20 कदम दूर रहे #varaniumcloud

Varanium Cloud - Bar Bar safai de raha hai