The Hindu Business Line : AP Govt order propels Aksh Optifibre

THE Aksh Optifibre stock bucked the selling pressure this week thanks to an Andhra Pradesh Government order worth Rs 400 crore. The Andhra Cabinet this week took the final decision.

From Monday onwards the counter has been attracting increased attention from a section of market players.

According to Mr R. Bose of Vedika Securities, sudden emergence of serious buying interest in the stock was evident this week. On Monday, the stock opened with a gap and closed with substantial jump in price and volume. On Wednesday, the counter attracted a record volume of around 14 lakh shares on the NSE. From a closing price of Rs 39.50, the stock closed at Rs 55.15 today on the BSE, denoting a gain of over 48 per cent.

The stock gained by over 80 per cent in the last one month.

According to Mr Rajesh Agarwal of CD Equisearch, a prominent broking house has reportedly been picking up the stock quite aggressively. "However, the telecom cable stocks have been improving in recent months because of a change in business dynamics for the better in the current fiscal compared to the previous two financial years," Mr Agarwal added.

Dr Kailash S. Chaudhari, MD of the company, confirming that the AP Government has taken the decision to award the order for networking the State, told Business Line from Hyderabad that a formal contract would be signed shortly.

Mr Popat Sudesha, a director of the company, informed that a separate subsidiary of Aksh would be set up with a combination of equity and loan capital of Rs 150 crore to carry out the project in which AP Government would have a maximum investment of around Rs 25 crore.

Under the agreement, Aksh would be required to design, build, erect and operate broadband services, which will connect the gram panchayats, district headquarters and the state capital on an e-governance platform.

Aksh has already run such a project in Rajashthan. The company has in-house optical fibre and fibre reinforced rod manufacturing facility.

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