Preferential news powers BSES surge

DALAL STREET SPIKES

BSES hit an all-time high of Rs 705 before closing at Rs 700.90, up 6.63 per cent over its previous close. More than 5.59 lakh shares were traded on the BSE.

The counter witnessed some volatility in early trades, eventually hitting an all time high in afternoon trades. Reforms initiatives in the power sector have boosted the stock, with the Electricity Act 2003 playing a major part.

The counter was up on news that BSES will issue shares to promoter group Reliance in a preferential offer, aggregating approximately Rs 1,400 crore.

BSES has decided to come out with a preferential issue to promoters and other major shareholders, to strengthen the company's financial position, and to generate resources for implementing future growth plans, BSES said.

Major institutional shareholders like LIC and GIC would subscribe to nearly 1 crore equity shares, aggregating over Rs 600 crore.