Two stocks under scanner after excessive volatility

The stocks of two recently-listed companies, Aster Silicate and Emami Infrastructure, have come under the regulator’s scanner after unusual price volatility in the past three trading sessions.

While stock exchanges are collecting data on Aster Silicate, the Securities and Exchange Board of India (Sebi) has already launched a probe into trading of Emami Infra shares.

The price of Aster Silicate, listed on Wednesday, doubled in a single trading session after it opened at Rs 123 on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In three sessions, the stock touched a lifetime high of Rs 258 on NSE and Rs 250 on BSE and crashed nearly 25 per cent from there. Today, the stock fell Rs 47 to Rs 190 on BSE and Rs 49 to Rs 196 on NSE.

According to market sources, who spoke to Business Standard on condition of anonymity, a top Gujarat-based operator has been active in the Aster Silicate counter. “The operator is known to rig prices. It is likely that he picked up shares in the IPO and is exiting after the rise,” said a broker.

Aster Silicate saw a combined volume of over 80 million shares on the first day of listing on BSE and NSE. On the following two days, the volume was 40 million and 30 million. But alarmingly, delivery trades were 4-10 per cent in three trading sessions.

Aster Silicate, a Gujarat-based firm, makes sodium silicate, special drilling grade silicate and detergent grade silicate. The issue was subscribed 4.47 times.

Emami Infra, the demerged real estate arm of FMCG major Emami Ltd., opened as high as Rs598.80 on NSE, only to fall 86 per cent to Rs 86 on Wednesday. On BSE, the stock opened at Rs 250, hit a high of Rs 293 (Rs 306 below the NSE high) and then slipped to a low of Rs 86. Sebi is also investigating the reason for the difference between NSE and BSE prices, which was only for 17 seconds.