Zee Telefilms To Allow Hike In Fii Limit
The Zee Telefilms' board has recently taken a decision to allow the foreign institutional investor (FII) holding in the company to be raised from the existing level of 24 per cent to 30 per cent. An extraordinary general meeting (EGM) of the company has been called on April 29.
'Our board has already cleared the move to allow FII limit to be raised recently. We will put up the issue in the EGM on April 29,' a top level Zee Telefilms' source told Business Standard.
Warehousing for the stock has already begun in the stock market and the stock was traded at Rs 395 in kerb late on Saturday when the market close was around Rs 365 levels.
'We already have market operators piling up the stock in anticipation of the increase in limit. There is a lot of demand for the stock in the market. The stock has been riding high on the information that results would also be spectacular in March 1997-98,' a dealer at a leading institutional brokerage said.
There will be total 12.5 lakh shares available for FII investment as a result of the decision to allow FII holding to be raised to 30 per cent. The stock touched its 52-week high on Friday. It closed on the BSE on Friday at Rs 364.75. It touched its 52-week high on the NSE at Rs 357.85 with 1.92 lakh shares traded. Brokers expect the stock to rise sharply as overnight orders will be executed today morning.
'We will not be surprised if the stock touches new highs in the next few trading sessions,' another BSE broker commented. The stock has risen sharply from Rs 232.60 on the BSE on March 26, when it touched a high traded volume figure of 5.28 lakh shares.
Brokers said the stock has been rising consistently for over two months. However, the permission to increase the FII limit to 30 per cent will trigger more demand for the stock. 'The market also expects a jump of 80 per cent in net profit this year. They have also announced some ambitious plans of raising money from New York Stock Exchange and reaching out to global audience. All these combined together has resulted in Zee Telefilms becoming the most sought after stock,' the dealer added.