Misleading Investors is Market Abuse” says K Ravi Shankar, Director, Basai Steels Allegations Rock A-One Steels’ IPO Plans to raise 650 Crores

Mumbai, Sep 08

K Ravi Shankar, one of the Directors of Basai Steels and Power Private Limited (BSPPL) had raised serious concerns regarding corporate governance violations, regulatory oversight, and financial misrepresentations of affairs of the company by A-One Steels India Limited, who is one of the significant shareholders of Basai steels.

The allegation has rocked A-One Steels’ IPO Plans to raise Rs 650 crore.

Allegations were raised regarding misstatements such as 30-year agreement without legal documentation or registration of lease deed of Bellary Plant I, understatement and undervaluation of contingent liabilities and subdued matters against Basai Steels leading to misleading valuation of A-One steels. A-One steels had raised term loan of ₹100 Crores from Bajaj Finance Limited using Basai steels assets as security often in committing material breach by not serving the required notices key stakeholders including other important shareholders and Canara Bank.

Further, the management of Basai steels, under the pressure of A-One steels had conducted Board meeting dated April 07, 2025 with a notice of only one day, to take decisions impacting capital structure, auditor changes, and control of the company, which are in violation of Secretarial Standards and Companies Act provisions.

“Such concealment of material facts and misuse of company assets, if left unchecked, will not only mislead investors but also undermine faith in India’s securities market. Immediate regulatory intervention is crucial,” said the complainant, K. Ravi Shankar, Director, BSPPL. Further, K Ravi Shankar raised concerns on the failure of merchant banker Prabhudas Lilladher Capital, who raised.

It is pertinent to note that A-One steels filed DRHP in December 2024 with SEBI for raising 650 Crores from securities markets. Subsequently, SEBI cleared the DRHP without any observations in May. Interestingly, despite formal complaints filed in June and July, SEBI is yet to respond, sparking concern that important issues are being dismissed without independent scrutiny. Stakeholders allege that SEBI’s approval of A-One Steels’ DRHP in May 2025 overlooked multiple red flags. The issue of failure of corporate governance mechanisms at Basai is also flagged to MCA.

The matter underscores the urgent need for stronger regulatory vigilance to protect investors and uphold corporate governance standards in India’s capital markets considering the losses being incurred by retail investors subsequent to the listing on stock exchanges.

EoM.