The share price of GKW Limited, an industrial goods company that makes nuts, screws, stampings and wheels, has jumped six-fold between July 20 and August 3—for no clear reason, though it appears linked to a share swap deal with Graphite India proposed earlier this year.
In March, Graphite India Ltd, which like GKW is Kolkata based, announced that it would offer Graphite shares to GKW shareholders under a “scheme of arrangement” to demerge GKW’s Powmex Steels Unit in a bid to restructure the company, whose shares have gone up from Rs. 55 on July 20 to Rs. 337 on Monday.
Officials of GKW, earlier known as Guest, Keen and Williams, could not be reached, with no one answering the number at its corporate office.
Trading in shares of GKW Limited, formerly Guest, Keen and Williams, was suspended with effect from June 24 on account of the ‘scheme of arrangement,’ when the share price was Rs. 38.15.
“The way the scrip has moved, it does not seem right. Even if there were some fundamental reasons, price of shares rise in a phased and gradual manner,” said Hitesh Agrawal, Head of Research with Angel Trading.