A day after shares of KGN Industries soared by 76,000 per cent on re-listing, stocks of Indore-based finance company Sylph Technolgies that reentered the Bombay Stock Exchange on Thursday zoomed 99,900 per cent to hit an intra-day high of Rs 800. Shares of Sylph Technologies got re-listed at Rs 152 and closed at Rs 200, up by Rs 199.20 or 24,900 per cent from its previous close of Rs 0.80, even as the benchmark BSE Sensex ended the day lower by 336 points or 1.95 per cent cent at 16,907.11 points.
As circuit filters (a fixed band in which prices are allowed to move on a given day) are not imposed on the day of listing or re-listing, stocks usually see wild swings on such days.
"The volume was very low on both the scrips (KGN and Sylph) and it was easy for anyone with ample money to rig their prices. Operators always have a liking for such scrips," said the head of a domestic brokerage firm who did not want to be named.
Meanwhile, hinting that the surge in its share price was exorbitant, Sylph Technologies Director Rajesh Jain told a private news channel on Thursday that on the basis of earnings per share (profits distributed per share), the fair value of the scrip was at Rs 3.
Following the move in the share price of KGN, the BSE that had suspended the scrip from trading 12.20 pm on Wednesday later came out with a release fixing the closing price of the scrip at Rs 5,216.30.
“Further investigations are being carried out to examine the placing of orders at unrealistic prices and appropriate action, if any, will be initiated against the concerned entities,” the exchange had said in the release.
However, no such measures were taken in the case of Sylph Technologies as the trading was not suspended in the scrip.