Man Industries Share Price Crashes 13% After SEBI Ban | Stock Market Today

Market Performance

The trading session turned harsh for Man Industries share price, with the stock plunging nearly 13% to ₹356 apiece on Tuesday. The sharp fall came after a regulatory order, which sparked heavy selling interest and kept the stock under pressure throughout the session.

This decline stood out in an otherwise steady market environment, as investors reacted strongly to the latest update from the securities regulator.

SEBI Action and Penalties

The sharp decline was sparked by a regulatory order, with the Securities and Exchange Board of India (SEBI) imposing a ban on the company and three of its top executives.

Key details of the order:

• Ban period: 2 years from accessing the securities market
• Monetary penalty: ₹25,00,000 each on three executives –
  • Ramesh Mansukhani (Chairman & Director)
  • Nikhil Mansukhani (Managing Director)
  • Ashok Gupta (Ex-Chief Financial Officer)

According to the order, SEBI flagged issues in the company’s past financial reporting, including non-consolidation of a subsidiary, misreporting of related-party transactions, and round-tripping of funds between 2015 and 2021.

Company’s Clarification

Following the SEBI order, the company issued an exchange filing to address investor concerns.

• The company stated that the penalty is minimal compared to its overall business scale.
• It emphasized that there will be no impact on daily operations.
• Man Industries highlighted a strong order book worth ₹4,700 crore, underscoring business continuity despite the regulatory setback.
• The management further clarified that since the company is not directly engaged in securities market trading, the restrictions will not affect its core operations.

Q1FY25 Financial Performance

Despite the regulatory headwinds, Man Industries’ financial performance for the first quarter of FY25 reflected resilience.

• Net Profit: ₹27.6 crore, up 45.2% YoY (vs ₹19 crore last year)
• Revenue from Operations: ₹742.1 crore, down 0.9% YoY (vs ₹749 crore last year)
• EBITDA: ₹49.4 crore, up 28.2% YoY (vs ₹38.5 crore last year)
• EBITDA Margin: Expanded to 6.6% from 5.1% a year ago

The financials highlight how the company continues to strengthen operational efficiency, even as revenue stayed largely flat.

Summary

• Man Industries share price fell nearly 13% to ₹356 after SEBI barred the company and three executives from accessing the market for two years.
• A penalty of ₹25 lakh each was imposed on the three senior members.
• Issues cited included non-consolidation of subsidiaries and misreporting of transactions between 2015–2021.
• The company clarified that the penalty is insignificant to its scale and has no impact on core operations, backed by an order book of ₹4,700 crore.
• On the financial front, Q1FY25 results showed 45.2% YoY profit growth with improved margins, reflecting operational stability.