Birla Cotsyn

Birla Cotsyn stock heads northward
FOR those who invested in the IPO of Birla Cotsyn, there was some good news in store on Thursday. After making a dismal debut on Wednesday, when it fell below the face value, the stock surged northwards on Thursday as day traders rushed to the counter, targeting a quick buck. The market was abuzz with talks that the stock would be provided “support” so that at least big investors who took the decision of investing in the company’s IPO would get a decent return on their investments. This, say dealers, led to many day traders jumping into the fray.

While nearly two crore shares changed hands at the counter on Thursday, less than 17% resulted in actual delivery. The counter was witness to a number of intra-day bulk deals when entities like OPG Securities, Transglobal Securities and Chimanlal Maneklal Securities, among others, struck trades without taking delivery. When the stock listed on Wednesday, it closed at Rs 9.20 against the issue price of Rs 14 (face value is Rs 10). Dealers were surprised to say the least when the counter was not even able to sustain such a low premium. On Thursday, the stock gained nearly 19% or Rs 1.70 to close at Rs 10.90. During the day, it touched its upper circuit of Rs 11.

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