The stock of Chennai-based Wheels India hit the roof on Friday with higher trading volumes. After gaining about 13 per cent on Thursday, Wheels India jumped 20 per cent in Friday's trade to close at Rs 671.80 on the BSE.

Trading volumes jumped to 1.01 lakh shares against the two-week average of just 2,057 shares. However, of the 1.01 lakh shares, only 6.31 per cent or 6,425 shares were up for delivery. On the NSE, over 2 lakh shares were traded with only 12,918 shares or 6.3 per cent were deliverable quantity, suggesting that most of the trading was confined to intra-day activity.

The stock almost jumped 150 per cent this year, even as the BSE Sensex and the NSE's S&P CNX Nifty were struggling. The stock was moving in Rs 200-300 range for large part of 2011.

According to market observers, stocks with higher promoters holding have been gaining on the bourses on hopes that either the promoters will dilute their stake or consider delist.

According to SEBI mandate, by June 3, 2013, companies have to maintain a minimum public float of 25 per cent.

Currently, promoters hold 85.62 per cent stake in Wheels India.

The Wheels India board, in fact, met on April 30 to consider and discuss raising equity capital to comply with listing agreement criteria and to meet company's funds requirement.

“It was decided to continue the discussions in subsequent meetings,” said the company notification to the BSE on that subject.

When asked whether a delisting is being planned by the promoters, Mr Srivats Ram, Managing Director, Wheels India, replied in the negative. He also said there is no information or announcement that could have a bearing on the share behaviour.

Meanwhile, the company board is meeting again on May 30 to consider the audited financial results for the year ended March 31.

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