Lumax Automotive zooms 20% for second straight day

The company files application with BIFR for determination of the measures which shall be adopted with respect to the company.

Lumax Automotive Systems has locked in upper circuit of 20% at Rs 55.20 on the BSE after the company said it files application with the Board for Industrial and Financial Reconstruction (BIFR) for determination of the measures which shall be adopted with respect to the company.

The auto parts & equipments manufacturer said as per the audited annual accounts of the company for the year ended March 31, 2015, adopted on September 28, 2015 shows that the entire net worth of the company has eroded and hence as required under the provisions of SICA a reference under section 15(1) shall be made by the Company within 60 days from the date of adoption of audited accounts at the AGM, to BIFR for determination of the measures which shall be adopted with respect to the company.

In furtherance to the above the board of directors of the company has filed the reference application with the BIFR under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 on November 23, 2015, it added.

In past two trading sessions, the stock rallied 44% from Rs 38.35 on the BSE. Till 09:51 AM, a combined 352,280 shares changed hands and there were pending buy orders for 67,989 shares on the BSE and NSE.