Tamil Nadu Newsprint gains from LIC deal

DALAL STREET SPIKES

Paper maker Tamil Nadu Newsprint & Paper rose more than 5 per cent to Rs 71.20 in early trades on news that the Life Insurance Corporation (LIC) has acquired a 10 per cent stake in the company.

The stock closed at Rs 68.60, up 1.03 per cent from its previous close, with 1.65 lakh shares traded. On the NSE, the stock hit a high of Rs 75, with volumes of over 5.33 lakh shares.

The stock has rallied in the last few weeks. From a low of Rs 52.20 on 18 August 2004, the scrip has surged nearly 34 per cent to Wednesday's close of Rs 68.60.

On September 28, 2004, LIC acquired 69.63 lakh shares of T N Newsprint, amounting to a 10 per cent stake, at Rs 64.20 - near the then ruling market price. LIC bought the stake by way of an off-market deal from IDBI.