Relisting works magic on scrips

133 companies benefit from rally in mid-cap, small-cap stocks.

It has been a "boom" time for companies that have been re-listed in the current calendar year with a phenomenal rise in their scrip prices. One hundred and thirty-three companies have been benefited from the boom after their promoters' fulfilled the listing norms. The gain in one instance has been as high as 4,340 per cent.

The rally in mid-cap and small-cap stocks has attracted promoters to re-list companies that have been suspended from trading for not fulfilling listing norms. Even today, the promoters of de-listed companies are rushing to re-list their stocks on the bourses to cash in on the bullish trend.

Of the 133 firms re-listed in the current calendar year, 11 companies, which were re-listed below the par value of their shares, have appreciated by over 1,000 per cent within two to five months of their re-listing.

Among others, 11 more stocks appreciated by 500-1,000 per cent, 41 appreciated between 100 and 500 per cent and 15 between 50 and 100 per cent.

However, the shareholders of another 11 companies were unlucky as the market value of their holdings declined between 10 and 84 per cent after re-listing.

BCL Forging was the largest gainer after being re-listed on April 21, 2005. The stock is currently quoted at Rs 68, 4433 per cent higher than its re-listing price of Rs 1.50. The stock was last traded in May 2001 at Rs 1.25 on the Bombay Stock Exchange.

Minal Engineering's market price rose by 3,471 per cent to Rs 155 from its re-listing price of Rs 4.34. The stock is currently trading at a life-time high. It was last traded in July 2000 at Rs 5.40 and was re-listed in February 2005.

Country Club, Gujarat Carbon, Saya Housing Finance, Ind Agiv Commerce, Gayatri Sugar and Citi Port Financial got themselves re-listed after a gap of five years. Chandrika Trade, Panther Industrial Products, Hingir Rampur, Golden Carpet and Lancor Holds last traded in 2001.

Most of these stocks were delisted by the exchange for non-compliance with various clauses of the listing agreement. A few of them failed to submit their quarterly results while others failed to declare their book-closure dates.