Securekloud Tech shares tank as ED arrests promoters in Money Laundering Act

Shares of Securekloud Technologies hit and lower circuit of 5 per cent after the promoters of the IT Solution provider were arrested by the Directorate of Enforcement (ED) in a money laundering case on Friday. The company informed the bosses about the same on Saturday.

The company informed the exchanges that two of its promoters have been arrested by the ED under the provisions of the Prevention of Money Laundering Act.

Suresh Venkatachari and RS Ramani, the promoters of SecureKloud Technologies, have been arrested by the Directorate of Enforcement on March 24, 2023, alleging that they are guilty of an offence under the provisions of the Prevention of Money Laundering Act, 2002, the company said in an exchange filing.

"The company said in an exchange filing that Venkatachari shall cease to be the president of the company with immediate effect," the company's regulatory filing added.

Following the announcement, shares of Securekloud Technologies hit a lower circuit of 5 per cent to Rs 36.80 on Monday. The scrip had settled at Rs 38.73 on Friday. The counter is trading about 65 per cent below its 52-week high of Rs 105, hit in April 2022.

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Securekloud Technologies's shares have dropped about 10 per cent in the last one month, whereas the counter is down 40 per cent in the year 2022 so far. In the last one year, the stock has wiped out 60 per cent of investors' wealth.

Securekloud Technologies, erstwhile known as 8K Miles, rebranded itself as the company that enables digital transformation for enterprises with cloud-based solutions. It is based in the San Francisco Bay area.

Previously, the company had been under SEBI's scanner for manipulative and fraudulent stock trading since 2012 after unusual price fluctuations.

For the quarter that ended on December 31, 2022, Securekloud Technologies reported a net loss of Rs 2.36 crore with revenue from operations of Rs 18.86 crore. The company commands a total market capitalization of less than Rs 125 crore.

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