Andhra Cement soars on placement buzz

DALAL STREET SPIKES

The Duncan Goenka group company Andhra Cement has gained for the second day in succession on Tuesday on reports that the company is in discussion for a private placement of about 15 per cent stake. The stock jumped 20 per cent to Rs 39 on the BSE on the back of a 13.8 per cent rise to Rs 32.50 on Monday.

"Firming up of cement prices based on the robust off-take of cement from June 2005, despite monsoon season, has boosted cement stocks in the market.

But this stock has picked up due to the buzz in the market that some foreign or domestic investor was in talks to pick stake in the company and the latest report on the private placement," a dealer said. The stock rose from its recent low of Rs 24, about 10 days ago.

However, there was no such deal struck by the company so far. The company has 1.4 million tonne capacity at its production units located at Vijayawada and Visakhapatnam in Andhara Pradesh.