Jindal Worldwide hits sixth straight upper limit

The stock ended at its 5% upper circuit at Rs 233 and the counter clocked volumes of 4,837 shares on the BSE.
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(Updated at 1140hrs)

Jindal Worldwide has hit 5% upper limit for the six straight trading day, in an otherwise weak market. The stock is frozen at Rs 233 today. The stock has appreciated by 34% in last six trading days.

The stock opened at Rs 230, and immediately hit the higher band of circuit limit. The counter has seen low volume of 2,451 equity shares compared to the average 8,637 shares for the last two-weeks on the BSE.

The company had reported robust financial results for the first nine months ended December 2009. It reported profit of Rs 9 crore for first nine months (April-December) of FY10, against Rs 0.05 crore in same period of previous year.

The Ahmedabad-based textile major, has envisaged a total cost of Rs 225 crore for upcoming projects in the field of spinning, weaving, home textile, garmenting, terry towel, yarn dying, captive power plant and real estate business. The company has received an approval from Government for upcoming SEZ projects.

“To part finance the expansion project, the company is planning to tap the capital market through public issue and/or on a private placement to qualified institutional buyers (QIBs) or preferential allotment basis, or through securities linked to ordinary shares including but not limited to Foreign Currency Convertible Bonds (FCCB)” the company said in its latest annual report.