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Our Bureau

Mumbai, Sept. 4 After debuting on the bourses on Monday at a premium of almost 100 per cent to its issue price, Resurgere Mines and Minerals ran a volatile course on Thursday, as the stock hitting both the upper and lower circuit.

The share touched an intraday high of Rs 740, 18 per cent up from its previous close. But it closed at Rs 500.55, also its day’s low, recording a dip of 20 per cent from its previous close.

The stock was among the most traded stocks B-group on the BSE.

Diana Tea Company which got re-listed on Thursday, also hit the upper circuit, its share zooming 162.2 per cent as soon as trading opened.

It opened Rs 60.70, which is Rs 37.55 above the price at which it was trading at on the day it was de-listed.

Due to capital re-structuring trading in the company’s shares was temporarily suspended from July 29, 2008. Previously the company had a equity base of 3.75 crore shares of Rs 2 face value; post restructuring the base is 1.50 crore shares and face value Rs 5.

The price movement in both Resurgere Mines and Diana Te appears to be operator driven, said the director of research at a brokerage:

“The regulators should take note of such unusual price movements. Even though the fundamentals of these companies do not change why should the share price increase so much? There have not been any major developments that took place in the tea industry lately and neither have the other tea stocks seen a surge in their share price. So it is rather unusual that the share price of Diana Tea Company sky rocketed today.”

The head of research at another stock broking firm agreed that the price fluctuations appeared abnormal: “People are speculating quite a bit on these newly listed stocks and I would especially advise the retail investors to stay away from such stocks.”

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