Man Industries (India) Ltd shares slumped 10.67 percent on Tuesday to Rs 363.30 after the Securities and Exchange Board of India (SEBI) imposed penalties on the company and key directors for lapses in financial reporting and compliance.
In its order dated September 29, 2025, SEBI levied a penalty of Rs 25 lakh on the company, and Rs 25 lakh each on Chairman & Director Ramesh Mansukhani, Managing Director Nikhil Mansukhani, and former CFO Ashok Gupta. The three individuals have also been restrained from accessing the securities market for two years.
The penalties primarily relate to non-consolidation of financial statements with subsidiary Merino Shelters Pvt Ltd (MSPL) and procedural lapses covering FY2015–2021.
In its clarification, the company said the penalty is minimal in the context of its size and operations and will have no material impact on financials or day-to-day activities. Man Industries also emphasised that, as it does not trade in securities, the restraint order has no bearing on operations.
The company added that its order book remains strong at around Rs 4,700 crore, with margins improving and capital expenditure projects on track for completion by Q4 FY26. It also highlighted monetisation of its MSPL asset, with Rs 70 crore already realised and Rs 650–700 crore expected over the next five to six years. The firm is evaluating the SEBI order and intends to pursue legal remedies.
On the market front, the stock hit a day’s high of Rs 385.00 and a low of Rs 340.00 during the session. Over the past year, it has gained just over 2 percent, moving between Rs 201.55 and Rs 468.00. Man Industries shares currently trade at a price-to-earnings multiple of 15.14.
The company clarified that the implications of the current SEBI order are not material to its business operations and financial health:
| Particulars | Implication |
|---|---|
| Penalty | A penalty of ₹25 lakhs only has been imposed, which will have no impact on company's financial position. |
| Restriction | (i) No restriction on the trading of company's shares by investors. |
| (ii) Company is restrained from trading in shares of other companies for 2 years. This has no implication, as such activity is not part of our ordinary course of business. |
| Aspect | Details |
|---|---|
| Record Order Book | ₹4,700 crores with improved margins across projects. |
| Asset Monetisation | MSPL asset sold, yielding a partial inflow of ₹70 crores, with ₹650-700 crores receivable over the next 5–6 years. |
| Strengthened Governance | No compliance lapses recorded over the last 4 years, reflecting high corporate governance and internal controls. |
| Capex Growth on Track | All new capital expenditure projects are moving forward as planned and on schedule for completion by Q4 FY26. |
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