RPP Infra Under Regulatory Lens as ROC Launches Investigation into Group Entities

RPP Infra Projects Ltd has received a formal notice of investigation from the Registrar of Companies (ROC), Coimbatore, seeking detailed data and documents related to one of its group companies. The development has triggered scrutiny over the company’s governance practices and inter-company transactions.

 

Key Highlights:

 

- The ROC has requested specific financial and operational records pertaining to a group entity associated with RPP Infra, indicating a probe into compliance and disclosure norms.

- The notice was issued under provisions of the Companies Act, and RPP Infra is expected to respond within the stipulated timeframe to avoid further regulatory escalation.

- The company has acknowledged receipt of the notice and is reportedly preparing its documentation for submission.

 

Background Context:

- RPP Infra, a mid-sized infrastructure player, has executed over 200 projects across roads, water supply, and industrial construction in South India and Maharashtra.

- The company has recently undergone board-level changes and is implementing a Rs 42 crore resolution plan following insolvency proceedings in 2023.

- Promoter holding has declined to 39.2% as of May 2025, raising questions about strategic control and investor sentiment.

 

Market Reaction:

- Shares of RPP Infra traded flat following the announcement, with analysts awaiting further clarity on the scope and implications of the investigation.

- The company’s recent credit rating downgrade to “Issuer Not Cooperating” by Infomerics has added to investor caution.

 

Outlook:

- While the ROC’s inquiry may be procedural, it places RPP Infra’s internal controls and transparency under the spotlight.

- Investors will be watching for disclosures in the company’s next board filing or AGM proceedings.

 

Sources: Rediff MoneyWiz, Economic Times Markets, Infomerics Ratings, Screener.in, BSE India