76 Lakh Indo Rama Shares Traded In Two Days

A sudden spurt in trading volumes and prices at the Indo Rama Synthetics counter has taken marketmen by surprise. In the past two trading sessions at the major bourses, over 76 lakh shares of Indo Rama have changed hands. The figure works out to nearly 6 per cent of the equity capital of the company.

On Tuesday, the scrip witnessed a negotiated deal of 19 lakh shares on the BSE at the rate of Rs 8 per share. Yesterday, the scrip witnessed trading in 35.73 lakh shares through just 76 deals. On the NSE, the scrip witnessed trading volumes of 19.80 lakh shares in 59 deals.

 

On the BSE, the scrip closed at Rs 9.70 after touching an intra-day high of Rs 10. On the NSE, the scrip closed at Rs 9.35, up Rs 1.20 over the previous close. The scrip had been ruling at Rs 8-levels on Monday on the BSE.

The sharp spurt in trading volumes, coupled with an increase in prices (the scrip has gained nearly 20 per cent in the past two trading sessions), has baffled marketmen especially because of the weak fundamentals of the company. Marketmen point out that the company has defaulted on every term loan from institutions.

While the nature of buyers could not be ascertained, there is a view that operators could be warehousing the shares in anticipation of some development at the counter. The other possibility could be that foreign funds could be exiting out of the counter to get into other liquid scrips, said a source at an FII brokerage. The domestic institutions have also been sellers at this counter in recent days and the possibility of interested buying has not been ruled out by marketmen.

Amongst the key FIIs to hold sizeable Indo Rama shares is the Morgan Stanley Growth Fund with 7.99 lakh shares as on March 31,1997.