Bonus issue lifts Zodiac Clothing

DALAL STREET SPIKES

Zodiac gained on liberal bonus issue. The stock gained 0.91 per cent after the company announced after market hours on Tuesday about an issue of bonus shares in the ratio of 1:1. Investors lapped up the share in the morning trade with the counter witnessing volumes of more than 16 thousand shares on BSE.

The stock in intra-day trades has hit a high of Rs 580. The stock has witnessed solid surge from Rs 435 on June 23 to Wednesday's close of Rs 569.45, appreciating 30 per cent in a short time.

Analysts tracking the company said, the stock has been buzzing on back of strong quarterly performance and also on the fact that the company holds a stake in Provogue, which will be listed soon. The investor value will get unlocked once the Provogue issue gets listed on the bourses.

Reliance Energy Investments (a subsidiary of Reliance Energy) recently acquired 3 lakh equity shares aggregating to 7.17 per cent voting rights of Zodiac at a price of Rs 400 per share through preferential issue.