Penny stocks: BSE cautions investors on trading in 2 shares; do you own them?

Amid the ongoing buzz around stock market manipulation, leading stock exchange BSE has cautioned investors against trading in two penny stocks namely- IFL Enterprises and GACM Technologies, through a circular on Tuesday, July 08. The exchange has recently come across instances of unsolicited messages being circulated in these securities.

Interestingly, both the listed entities are priced around Re 1 each and have market capitalization less than Rs 150 crore. Also, public shareholding in these companies is seen in the 90 to 100 per cent range, with promoters owning less than 10 per cent stake in them.

Issuing in the interest of the investors, said BSE said, “Investors are advised to exercise due caution and refrain from dealing based on such Recommendations by unauthorized/ unregistered entities including those received through Whatsapp, Telegram, SMS, Calls, other Social Media platforms and more.”

Investors are also cautioned against getting trapped through claims of high/assured returns from trading in securities markets through social media platforms such as Youtube, telegram channels, Whatsapp channels, Instagram, X (Earlier known as twitter) and more, the circular added.

Shares of IFL Enterprises were down 4.27 per cent on Monday, locked in the lower circuit limit at Rs 1.12. The company commanded a total market capitalization of 139.08 crore. The stock is down 18 per cent from its 52-week high at Rs 1.36 which has crashed more than 90 per cent from its 2023 peak.

GACM Technologies also tanked 4.45 per cent, its lower circuit limit, to Rs 0.85 per share. The company is valued at Rs 93.73 crore. Promoters own only 8.61 per cent stake in the company, while the remaining 91.39 per cent stake is held by public shareholders. The stock has lost two-third or 67 per cent of its value from its January 2024 peak.