Balkrishna Inds slips despite bonus deal

DALAL STREET SPIKES

Balkrishna Industries witnessed sell-off as announcement of a bonus issue failed to impressed the market. The stock in a subdued market was down 7.5 per cent to Rs 546.3 after the company's board of directors approved a 1:2 bonus issue.

Market analysts said, the counter witnessed selling pressure as the bonus annnouncement fell short of street expectations. Prior to the announcement of the bonus announcement, the stock had a dream run. From Rs 474.90 on May 9, the stock has jumped 28.5 per cent in last few trading sessions to Tuesday's close of Rs 546.30.

The counter was thinly traded with just 9,190 shares changing hands at the counter in Tuesday's trading. Meanwhile, the company has initiated actions for further expansion at a capital outlay of Rs 85 crore which will be funded by internal accruals or term loans. Balkrishna Industries is into tyre and paper business.