Force Motors Shares Fall As SEBI Seeks Information On Results Disclosure

Shares of commercial vehicle maker Force Motors fell on Thursday after the company disclosed that it had received a communication from the Securities and Exchange Board of India (SEBI) seeking additional information on earlier financial disclosures.

Force Motors shares dropped as much as 4% during the session and touched a day’s low of ₹20,593.55 on the Bombay Stock Exchange (BSE). The decline followed an exchange filing in which the company said the regulator had asked for details related to its financial results announcement made in 2024.

Force Motors clarified that the communication does not indicate any regulatory violation at this stage. The company also said SEBI has not imposed any penalty, restriction or sanction.

Even so, the development drew market attention because the request relates to disclosures made around a period when the company’s share price had moved sharply.

Why Did SEBI Seek Information From Force Motors?

In its regulatory filing, the company said SEBI has asked for additional details related to the disclosure of its unaudited financial results for the quarter and half-year ended September 30, 2024.

The regulator has sought the following information:

• A timeline of events related to the disclosure.

• Details of insiders who may have had access to the information.

• Information on designated persons.

• Relevant records from the management information system (MIS).

• Extracts from the company’s structured digital database.

Force Motors said it will respond to the regulator within the prescribed timeline. The company added that no irregularities or non-compliance have been identified so far.

What Is The Company's Financial Performance?

Force Motors has recorded consistent financial growth in previous quarters in spite of the latest market response.

The organisation recorded a ₹135.02 crore net profit for the quarter that concluded on September 30, 2024. During that time, operating revenue also improved along with a profit before tax of ₹211.48 crore.

For the first half of FY25, Force Motors reported:

• Net profit of ₹250.75 crore

• Revenue from operations of ₹3,826.23 crore

The company’s performance has been supported by demand for luxury engines supplied to global automobile brands such as BMW and Mercedes-Benz.

Force Motors has also maintained a zero-debt balance sheet, according to its disclosures. However, sales of its multi-seater van segment have moderated, partly offsetting growth in other parts of the business.

Earlier results also showed improvement. In the quarter ended December 2023, the company reported higher revenue and profit than it did a year earlier.

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How Did The Market React?

The stock saw volatility during Thursday’s session after the disclosure.

Force Motors opened at ₹21,624.55 per share on the BSE and later traded between an intraday high of ₹22,847.75 per share and a low of ₹20,593.55 per share.

The stock has seen sharp movements before. Exchange data shows that its share price had climbed more than 21% between February 15 and February 20, 2024.

Such movements often draw regulatory attention when authorities review disclosures or access to information.

For now, Force Motors said the communication from SEBI does not involve any immediate regulatory action. The company will submit the requested details within the required timeline while investors continue to track further developments.

Sources:

ET

Business Line

Mint