Zodiac Clothing hits top on bonus talks

DALAL STREET SPIKES

Zodiac Clothing spurted on bonus proposal. The stock in a subdued market hit the 10 per cent upper circuit of Rs 480.55. The counter, however, was thinly traded with volumes of just 3,595 shares on BSE.

Analysts tracking the sector said, the stock has been in the limelight on fund-based buying. It may be recalled that Reliance Energy Investments - a subsidiary of Reliance Energy, recently acquired 3 lakh equity shares aggregating 7.17 per cent voting rights of Zodiac Clothing Company at Rs 400 per share.

The acquisition was by way of a preferential allotment. The fund from the preferential issue will be used to part-fund capital expenditure needs, investment in subsidiary firms and to meet the company's working capital requirements.