The froth on the top of Olectra Greentech’s share price got blown away on Friday following the disclosure their promoters were on the list of buyers of the controversial election bonds that was released on Thursday.

Olectra, which makes electric buses, is part of Megha Engineering and Infrastructures Limited which donated Rs 966 crore to political parties, the second top donor in the poll bond list. For the quarter ended December 31, 2023, MEIL Holdings Ltd held 50.02 per cent stake in Olectra.

Earlier this week, Sebi chairperson Madhabi Puri Buch had warned of “pockets of froth” emanating from midcap and smallcap stocks, and Olectra Greentech did sparkle over the past year, rallying from Rs 633.85 on March 15, 2023 to Rs 1,790.80 on Thursday a gain of 182 per cent.

Olectra shares slumped almost 6 per cent in intra-day trades to hit a day’s low of Rs 1,686.50 on the BSE. It recovered some of the losses to settle at Rs 1,742.85, a fall of 2.66 per cent over the last close.

Megha Engineering bought bonds worth Rs 966 crore, while related entity UP Power Transmission bought Rs 220 crore, with the total amount purchased by the group at Rs 1,200 crore.

Qwik scan

A day after State Bank of India (SBI) data showed privately held firms occupying the top three electoral bond donor slots, there was a flurry of speculation over not only their links with political parties but also listed companies.

While Future Gaming & Hotel Services was the top purchaser of these bonds of Rs 1,368 crore, it was followed by Hyderabad-based Megha Engineering & Infrastructures Ltd with Rs 967 crore and Qwik Supply Chain Pvt Ltd which cumulatively bought Rs 410 crore between fiscal years 2021-22 and 2023.24.

Among them, there was intense speculation on Qwik’s links to Mukesh Ambani-led Reliance group which was denied by a Reliance Industries Ltd (RIL) official. ``Qwik Supply Chain Pvt Ltd is not a subsidiary of any Reliance entity,” the official told The Telegraph.

What set the buzz about the alleged link is the location of Qwik’s registered office and
its longest serving director — Tapas Mitra.

According to data available from Tofler, the authorised share capital of Qwik is Rs 130.99 crore and the total paid-up capital is Rs 129.99 crore. The company is engaged in the construction of warehouses and storage units and its registered office is at Dhirubhai Ambani Knowledge City (DAKC) in Kopar Khairne, Navi Mumbai.

The company has three directors, and one reported key management personnel. Further, the longest-serving director is Mitra who was appointed on November 17, 2014.

Mitra has been on the board for more than nine years. The most recently appointed director is Sridhar Titti, who was appointed on November 27, 2023.

While these details could not be independently confirmed, Tofler said Mitra serves on the board of 24 companies in India.

Reliance Eros Productions LLP, Ganesha Avaneesh Commercials and Reliance Fire Brigade Services Pvt Ltd are among them.

On the other hand, the other director is Vipul Pranlal Mehta who has been on Qwik’s board since December 10, 2019. He is also a director of six other companies in the country, according to Tofler.

While the official denied Qwik being a subsidiary of any Reliance firm, a PTI report claimed that filings with the Registrar of Companies (RoC) showed Reliance Group Support, Reliance Fire Brigade and Reliance Hospital Management together owning 50.04 per cent of Qwik, which provides logistics and supply chain support to Reliance’s retail unit.