Varanium Cloud misused IPO funds, faked sales to boost share
Varanium Cloud Ltd. raised about ₹40 crore in its September 2022 IPO, promising to invest in edge data centers and digital learning centers.
However, SEBI found these projects never happened, sparking suspicions that the funds were misused.
Company invoked names of big business groups, media outlets to
The company pitched itself as a hot tech player in digital media, blockchain, and EdTech, invoking the names of prominent business groups and media outlets to attract investors.
SEBI later discovered that Varanium Cloud faked sales and purchases to boost its turnover and pumped up its share price from ₹122 at IPO launch to over ₹1,600 within months.
ED found over 150 shell companies using fake documents
ED found an elaborate setup: over 400 cheque books tied to mule accounts, more than 200 SIM cards across dozens of phones, and money routed through 150 shell companies using fake documents.
SEBI had already banned Varanium Cloud and its promoter Harshavardhan Sabale from the markets back in May for their role in these shady dealings.