Shares of Securekloud Technologies hit a lower circuit of 5 per cent after they were arrested by the Directorate of Enforcement ED in a money laundering case. The company told the bosses about the same on Saturday.
The ED said two of its promoters were arrested under the provisions of the Prevention of Money Laundering Act.
Suresh Venkatachari and RS Ramani, promoters of SecureKloud Technologies, were arrested on March 24, 2023 by the Directorate of Enforcement, alleging they are guilty of an offense under the provisions of the Prevention of Money Laundering Act, 2002, the company said in an exchange filing.
In an exchange filing, the company said that Venkatachari will cease to be the president of the company with immediate effect, according to the company's regulatory filing.
On Monday, Securekloud Technologies' shares fell by 5 per cent to Rs 36.80 after the announcement. The scrip had settled at Rs 38.73 on Friday. The counter is about 65 per cent less than its 52 week high of Rs 105, hit in April 2022.
Securekloud Technologies' shares dropped by about 10 per cent in the last month, while the counter is down 40 per cent in the year 2022 so far. In the last year, the stock has wiped out 60 per cent of investors' wealth.
Securekloud Technologies, formerly known as 8 K Miles, has rebranded itself as a company that enables digital transformation for enterprises with cloud-based solutions. Since 2012, the company had been under the scanner of the SEBI for manipulative and fraudulent stock trading.
Securekloud Technologies reported a net loss of Rs 2.36 crore for the quarter ended December 31, 2022, with revenue from operations of Rs 18.86 crore. The company has a market value of less than 125 crore.