98 Lakh Indo Rama Shares Change Hands In A Day

Sustained selling pressure from foreign institutional investors and domestic institutions resulted in a surge in trading volumes at the Indo Rama counter at the bourses for the third consecutive day.

Nearly 98 lakh shares of Indo Rama - possibly its highest ever in a single trading day - changed hands yesterday. Of this, a whopping 87.28 lakh shares (worth Rs 7.71 crore) were traded on the BSE.

On the NSE, 10.35 lakh shares worth Rs one crore changed hands. With these transactions, a total of 1.74 crore shares have changed hands in the past three trading sessions. This works out to a little over 10 per cent of the total equity capital of the company.

 

On the BSE, the scrip closed at Rs 10.25, up Rs 0.55 over the previous close. On the NSE, the scrip closed at Rs 10.25, a gain of Rs 0.90 over the previous close.

The Indo Rama GDR continues to trade at a 46 per cent premium to the underlying share price at $ 3 levels. While it remains an illiquid counter at the GDR markets, queries have been raised over the sustained FII selling. Marketmen said that FIIs have been offloading their holdings in the scrip following the disappointing performance of the company.

The fact that FIIs have been unloading in the past three days and that there have been takers for the scrip has raised eyebrows. There is a view that informed buying could have taken place in the scrip with the aim to boost the share price which had moved below par at the bourses. This, however, not be confirmed, and company officials were unavailable for comment.

Further, it is suggested that operators could be warehousing the shares in anticipation of some development at the counter. Indo Rama has signed a joint venture agreement with Mitsui Corporation of Japan for setting up a 3.5 lakh capacity PTA plant in Andhra Pradesh.