Bse Seeks Client Details To Probe Trade In Indo Rama

The major bourses have decided to examine the unusual trading volumes witnessed in the Indo Rama Synthetics scrip this week. The BSE has sought client details from broker-members who have placed orders in this scrip over the past three-four days. The NSE, on its part, is keeping a close watch on the scrips volumes.

However, Indo Rama managing director O P Lohia ruled out any takeover bid or `informed buying. We are not worried about a takeover bid for Indo Rama Synthetics, because the Lohia family has about 55 per cent in the company while FIs hold only 7-8 per cent and the public 10 per cent, said Lohia.

 

The Indo Rama scrip, which had been ruling below par for a long time, has risen to Rs 10.5, with 2.04 crore shares traded in the past four days. The volumes on BSE and NSE added up to a record 98 lakh shares on Thursday. Yesterday, 30 lakh Indo Rama shares were traded on the two bourses. Sources said SBI Mutual Fund offloaded a sizeable chunk of shares yesterday. The buyers could not be identified.

BSE officials said the bulk of shares that changed hands on Thursday were traded through a chain of brokers, although the same chain was not active on each day. The exchange has ruled out circular trading but will look at the nature of trading interest at the counter. However, sources in the market claimed the shares were being routed to two BSE operators.

Lohia argued that the relatively low rise in the scrips price inspite of hectic trading could mean that deals had been struck between FIs in a predetermined price range.

The price of the share has hovered around Rs 10 over the past 2 days, an increase of just Re 1 over the previous price of around Rs 9. The sticky share price also reveals that Indo Rama is not trying to engineer a spurt in trading to raise the share price to an artificial high, said Lohia.

Denying charges that the company passed on sensitive information to trigger the spurt, Lohia argued, We at Indo Rama have been continuously telling the industry and media that the polyester industry is upbeat... such a potentially high-growth industry could attract investors.