The Securities Commission (SC) is "looking into the affairs" of builder Mudajaya Group (5085) following a complaint it received about the company.
"As part of our continuing vigilance and proactive surveillance of corporate developments involving public listed companies that could undermine investor confidence and shareholder interest, the SC is looking into the affairs of the company," an SC spokesperson told Business Times yesterday in response to a query.
It said appropriate action would be taken should there be breaches of securities laws.
Mudajaya's managing director Ng Ying Loong, when contacted, said he found it strange that the SC would be looking into company's affairs as it has done nothing wrong.
Saying the company was prepared to extend full cooperation to the commission, he said the SC had contacted its auditors to get some general information.
Analysts like the stock. Bloomberg data shows that four out of five research houses that track the stock have a "buy" call, with target prices that range between RM5.80 and RM7.94.
The other research house does not rate the stock. Mudajaya closed at RM5.88 yesterday.
Ng told reporters last month that the company was bidding for five power projects in India, valued at about US$5 billion (RM16 billion) each.
It is currently involved in the RM3.4 billion equipment procurement contract for its Chhattisgarh independent power plant (IPP) in India, which has started contributing to the group's first quarter results.
Its net profit surged more than 260 per cent to RM50.6 million for the first quarter ended March 31 this year from RM14 million a year ago, of which about 30 per cent came from the IPP activities in India.
Ng said the IPP business would account for 60 per cent of the group's revenue this year.
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