Financial Daily from THE HINDU group of publications
Thursday, Feb 03, 2005
Financial Daily from THE HINDU group of publications Thursday, Feb 03, 2005 |
|
|
|
|
|
Markets
-
Stock Markets Corporate - Mergers & Acquisitions JK Investo Trade hits upper ceiling Jayanta Mallick
Kolkata , Feb. 2 AS a co-promoter of JK Investo Trade India Ltd, formerly JK Chemicals, has proposed delisting of the stock, the counter has been hitting the upper circuit on the Bombay Stock Exchange for the last three days. JK Investors (Bombay) Ltd has asked JK Investo Trade to delist its shares by acquiring non-promoter holding of 26.6 per cent through book building process. Accordingly, JK Investo Trade has sought shareholders approval to a relevant special resolution through postal ballot. According to Mr R.K. Ganeriwala, whole-time director of the company, who along with a constituted attorney has been authorised to conduct the postal ballot, scrutiny of the ballot would be done on March 5. This has caused sudden surge in demand for the stock. But as the BSE has a 5-per cent circuit breaker placed on the stock, the price movement is getting frozen within minutes of session opening. Today the stock froze at Rs 31.50 after moving up by Rs 1.50. According to an investor, Mr Rajesh Agarwal, who has been holding onto some shares of JK Investo Trade for last eight years, the circuit filter is hindering price discovery of the stock. "This is significant because current market price average would also influence the eventual exit price range for book building", he added. According to him, considering the book value and the current earnings per share, the fair valuation of the exit should be around Rs 60 per share. The key to net worth of the company lies in its investments in Raymond Ltd. J K Investo Trade holds around Rs 13.93 lakh shares of Raymond, representing 2.27 per cent of latter's paid-up capital. The ruling price of Raymond stock is Rs 290.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|