Century Textiles hits 52-week high on heavy volumes

In past two weeks, the stock surged 24% on the NSE against 5% gained in the CNX Nifty.

Century Textiles & Industries has rallied 7.5% to Rs 749 on the National Stock Exchange (NSE) in an otherwise subdued market on the back of heavy volumes.

The stock opened at Rs 696 and touched a 52-week high of Rs 773 so far. The trading volumes on the counter more than doubled with a combined 4.18 million shares changed hands till 1114 hours against an average 2.3 million shares that were traded daily in past two weeks on the NSE and BSE.

In past two weeks, the stock surged 24% from Rs 608 on March 27, after the promoter increased their stake in the company by converting warrants into equity shares. The CNX Nifty gained 5% during the same period.

On March 30, the finance committee of Century Textiles' board of directors allotted 8.47 million shares to the promoter group companies – IGH Holdings Private Limited (5.07 million) and Aditya Marketing & Manufacturing Limited (3.4 million) - on conversion of warrants.

After conversion of warrants, the total promoters holding in the company will touched close to 50%. As of December 31, 2014, the promoters held 40.23% stake in the BK Birla Group company.