‘Baseless, lacks factual basis’: Varanium Cloud SME reacts to mass social media campaign alleging ‘stock scam’

Varanium Enterprise, on Monday, issued response to a social media campaign alleging its involvement in a 'stock scam'. The small-cap IT firm called the allegations “baseless and lacking factual basis.”

The company claimed the massive campaign being run on social media platform ‘X’ was an attempt “to harm and tarnish the Company's reputation”.

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“Under the misleading hashtag #VaraniumCloudScam, certain Twitter handles have been posting unfounded falsehoods about the Company. We wish to categorically state that these posts are baseless and without any factual basis,” said the company in its stock exchange filing on Monday. 

Varanium Cloud Limited affirmed that its “books and balance sheet are solid, reflecting a company committed to financial prudence and responsible governance.” 

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To prevent the impact of the social media campaign on Varanium's stock price, the company said that it would take immediate legal action against those responsible for these inaccurate and harmful statements.

Accusing social media handles of spreading misinformation about the company, Varanium clarified that it did not make any commitment that 100% of the promoters' shares are pledged.

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As part of the trust-building activity, shareholders of Varanium will be invited to visit its facilities located in Sawantwadi under its comprehensive shareholder program, according to its stock filing.

About ‘VaraniumCloudSCAM’ social media campaign

Several X users had pointed out towards alleged irregularities in stock trading and dividend payment by the SME firm. One of the tweets alleged that the company didn't pay the promised dividends to its shareholders till now. Many users accused the company of creating bogus balance sheets and fake revenue. The company was also alleged of misusing IPO funds and cash flow. The company has rejected all the claims made under the social media campaign.