SEBI Issues Show‑Cause Notice to Nidan Laboratories Over IPO Funds
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SEBI has issued a show‑cause notice to Nidan Laboratories & Healthcare Limited (NIDAN) over alleged misuse of IPO proceeds.
- SEBI SCN dated 28 April 2026 questions the use of Rs 29.99 crore out of the Rs 50 crore raised in the 2021 IPO.
- The probe covers FY 2021‑22, FY 2022‑23 and FY 2023‑24; penalties, restitution or fines are not yet quantified.
- NIDAN has formally responded as required, but no immediate financial hit has been reported; the firm may need to set aside provisions.
- Potential repercussions include monetary fines, repayment of mis‑used funds, tighter capital‑market restrictions, and possible credit‑rating pressure.
- Core operations continue, yet strategic projects (e.g., expansions, R&D) could be delayed while management focuses on the investigation.
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