NCC soars over 10% on heavy volumes

At 1115 hours, a combined 6.39 million shares changed hands on NSE and BSE.

Shares of construction and engineering company NCC has soared 12% to Rs 49.70 on back of heavy volumes on the bourses. The stock opened at Rs 44.70 and touched high of Rs 51.20 on National Stock Exchange (NSE).

At 1115 hours, a combined 6.39 million shares changed hands against an average sub 2 million shares that were traded daily in past two weeks on NSE and BSE.

Last week, NCC announced that the rights issue of equity shares aggregating to Rs 598.70 crore received very good response from the shareholders and has been oversubscribed.

As per the objects of the issue, significant portion of the funds raised through the rights issue will be utilised for reducing the short term debt availed by the company, the Hyderabad-based construction and infrastructure company said in a statement.

The basis of allotment will be finalised in consultation with the Stock Exchanges and the allotment is expected to take place by the end of October and the funds are likely to be available to the company immediately thereafter, it added.