Havells India hits new high on heavy volumes

Havells India is trading higher by over 4% at Rs 676 on the back of nearly four-fold jump in trading volumes. The stock opened at Rs 656 and hit new high of Rs 681 on the Bombay Stock Exchange.

As many as a combined 625,788 shares have already changed hands on the counter till early noon deals against an average around 160,000 shares that were traded daily in past two weeks on both the exchanges.

In past three days, the stock has rallied 6% compare to a marginal 0.10% rise in Sensex after electrical goods maker said that it has inked a pact with a promoter entity whereby the trademark 'Havells' would be transferred to the company.

"One of its promoter companies, QRG Enterprises Ltd, which owns the trade mark 'Havells', has entered into a revised trademark license agreement with the company pursuant to which the brand will be transferred to the company for no consideration with effect from April 1, 2016," Havells said in a filing to the BSE.

“The said transfer of brand “Havells” has addressed investor concerns. It also resolves ambiguity surrounding estimation of future royalty payments. This improves the management credibility multi-folds; it would also enhance shareholder value,” analyst at Emkay Global Financial Services said in a report.