A real estate stock surging amid a double slump in both realty and stocks? Regulators are worried after a phenomenal rise in the share of Akruti City, which has doubled in 10 days.
The Securities Exchange Board of India (SEBI) is believed to be probing the movement.
The NSE has shifted the stock to the trade-to-trade category and stopped futures & options (F&O) trading in the stock believed to be behind the surge. Analysts say there has been no change in the company’s performance in the past two months and the movement is unwarranted by fundamentals.
The stock has zoomed for 12 consecutive sessions. On Thursday, the stock touched its 52-week high of Rs 2,364.25 before closing at Rs 2,227.50 with a gain of Rs 215.35 or 10 per cent over its previous close.
The stock hug limelight soon after the promoters paid back their dues to Indiabulls Securities and took possession of 5.32 per cent of the paid-up shares which were pledged as collateral for loans taken from Indiabulls.
“I don’t think the promoters have anything to do with it (price movement). This is the work of speculators. Someone who had gone short is desperately trying to buy,” said Gautam Hora, vice-president at Jones Lang LaSalle Meghraj.
Akruti City chairman Hemant Shah did not take calls on his cell phone neither responded to text messages from Hindustan Times.