‘Refrain from dealing’- BSE cautions to investors for this penny stock with zero revenue!

Leading exchange, BSE Ltd, has cautioned investors for dealing based on a multibagger penny stock, through a circular dated Monday, January 23. The stock is Silverline Technologies Ltd, which has delivered jaw-dropping returns to investors in less than a month. It is the second time in a week, when BSE has cautioned investors over this counter, following the first caution on February 16.

"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, etc," said BSE in its circular on Monday.

Issuing the word of caution in the interest of the investors, the circular also alarmed investors against getting trapped through claims of high/assured returns from trading in securities markets through social media platforms. Such suspicious counters turn prone to 'pump-and-dump' trading, trapping gullible investors.

Shares of Silverline Technologies were locked in the upper circuit limit of 5 per cent of Rs 21.60 on Tuesday, commanding a total market capitalization of Rs 336.80 crore. The stock hit its 52-week low at Rs 7.42 on January 27, 2026, which means that it has nearly tripled investors wealth in less than a month.

Interestingly, promoters owned only 5,625 equity shares of the company, which is nearly negligible as of December 30, 2025. Public shareholders own 15,59,21,863 equity shares of which only 343 individuals own 10,54,78,676 equity shares, or 67.65 per cent stake of the company as of the given date.

Only seven individuals namely- Gokalbhai Ghemarbhai Chaudhri, Jesinghbhai Jivabhai Chaudhri, Lilaben Masotbahi Desai, Manoj Sambhaji Sawant, Ronakkumar Ganeshbhai , Vikrambhai Gokalbhai Chaudhri- owned 8,36,57,788 or 43.40 per cent stake in it as of Q3FY26. Mutual Funds had negligible numbers of shares, while JP Morgan Chase Bank owned 6,98,857 shares, or 0.45 per cent stake.

Interestingly, the company reported no revenue for the quarter ended on December 31, 2026. Despite this, it managed to post a net profit of Rs 4.08 crore for the quarter, thanks to income from other segments. Its expenses for the quarter stood at only Rs 1.08 lakh. Listed as a software company, Siliverline's IT services revenue is zero.

Silverline Technologies has 11 exchange filing in the first three weeks of February 2026. In its recent exchange filing, the company board announced that its board has granted in-principle approval to explore a strategic investment by Trueledger Technologies FZE of up to Rs 80 Crore, representing up to 20 per cent equity participation.