Rs 3 crore to Rs 4,925 crore: Sebi order gives details on Dhenu Buildcon market cap surge

Sebi has passed an interim order in the matter of Dhenu Buildcon Infra after finding that the company’s market cap rose from about Rs 3 crore to Rs 4,925 crore during the examination period, even as its business remained small and its revenues were almost negligible.

The regulator said Dhenu Buildcon, a BSE-listed company earlier known as The Hingir Rampur Coal Company Ltd, allegedly received Rs 1,000 crore as unsecured loans from seven entities in just eight days between December 24 and December 2024.

Sebi’s enquiry found, on a prima facie basis, that these were not genuine independent loans, but part of a layered round-tripping of funds through a network of connected entities. The order followed a reference from the Serious Fraud Investigation Office dated April 20, 2026. Sebi examined the company for the period between August 1, 2024 and July 31, 2026.


According to the order, Dhenu Buildcon had very little business activity during the period. Its revenue from operations was nil in FY23 and FY24, and remained below Rs 1 crore in FY25 and FY26. Despite this, the company allegedly showed unsecured loan inflows of Rs 1,000 crore and later converted about Rs 840 crore of those loans into equity shares through a preferential allotment.

The stock price also moved sharply. Sebi said the share price rose about 194.62% from Rs 2.79 on August 1, 2024 to Rs 8.22 on July 31, 2026 on an open-to-close basis. On a high-low basis, the price rose about 315.41% to Rs 11.59 on July 1, 2026. During the same period, the market cap of the company increased from about Rs 3 crore to Rs 4,925 crore.

Sebi said Dhenu Buildcon received the Rs 1,000 crore through 46 separate credit transactions from seven entities. These included Golkonda Aluminium Extrusions, Edoptica Retail India, Tiaan Consumer, Twinkle Mercantiles & Credits, Shanta Agencies, Shri Niwas Leasing and Finance, and Utsav Securities.

The regulator said the same pool of funds was routed through several companies and brought back to Dhenu Buildcon, with each return being shown as a fresh loan receipt. Sebi identified 28 distinct routing patterns across 46 transaction cycles. It said the initial identified pool of about Rs 25.05 crore was repeatedly moved through corporate accounts and shown as cumulative inflows of Rs 1,000 crore.

The order said Dhenu Buildcon’s bank balance never exceeded about Rs 26 crore during the relevant period, even though the company claimed to have received Rs 1,000 crore. Sebi also found that the company transferred about Rs 996.1 crore to five entities almost immediately during the same eight-day period.

The regulator said the flow of money suggested a closed round-tripping structure rather than genuine commercial borrowing.

The second part of the alleged scheme was the conversion of these loans into shares. Dhenu Buildcon proposed to issue 5,91,54,92,940 equity shares at Rs 1.42 per share to non-promoter entities by converting unsecured loans into equity. The allotment was approved on December 27, 2025. After this, six allottees together held about 99.70% of the company’s diluted equity share capital.

Sebi said the loan transactions and preferential allotment could not be viewed separately. The regulator found, on a prima facie basis, that the purported loans, their conversion and the change in ownership were interconnected.

The order also relied on WhatsApp messages, call records, common shareholding, common directors, common addresses and site visits. Sebi said the material showed that the entities were not operating independently.

The regulator named Surendra Kumar Jain and Virendra Jain as key participants in the alleged scheme. Sebi said they were involved in operational and financial control over connected entities, coordination of banking arrangements, documentation and fund transfers.

Site visits also raised questions. At Dhenu Buildcon’s registered office, Sebi found a signboard, but said the office was functionally inactive and only one staff member was present. At the corporate office address, no office or signage of Dhenu Buildcon was found. Sebi also noted issues with addresses and physical presence of several connected entities.

Sebi said the six preferential allottees could make wrongful gains of about Rs 5,667 crore if allowed to sell shares near the prevailing market price of about Rs 8 per share. It noted that some allottees had already started selling small quantities after the lock-in expired on August 15, 2026.

The regulator said it was not necessary to wait for more shares to be sold to public investors. It therefore issued interim directions to prevent further sale of the disputed shares and preserve the status quo while the investigation continues.