Finolex Cables' decision to buyback its shares at an ex-bonus price of Rs 275 (a premium to its market price) has once again fuelled buying interest in the counter. On Monday, the stock inched up to Rs 252 from Friday's close of Rs 246. The scrip is expected to continue its upward journey in the coming days until the premium is narrowed. As per the norms, Finolex can buy 10 per cent of its shares from the public. If it buys back the prescribed limit of 10 per cent, the promoters will gain majority control of the company. The promoters, including corporate bodies, hold around 43 per cent, while institutions hold around 22.5 per cent, the public 26 per cent and FIIs 8 per cent.

The stock has been on the rise for the past one month thanks to the buyback news and excellent Q1 results. The company reported a 246 per cent jump in net profit to Rs 12.2 crore in the first quarter ended June 1999 against Rs 3.5 crore in the previous quarter. Turnover rose by 70 per cent to Rs 10 1.6 croreagainst Rs 60.1 crore in the corresponding period last year.

Shree Krishna Poly zooms ahead of rights

Ahead of its rights issue, Shree Krishna Polyester is zooming on the bourses. Since the announcement of the rights issue, the stock has shot up by 54.35 per cent in just four trading sessions from Rs 12.05 to the current level of Rs 18.6. Volumes, too, shot up on Monday to 46,840 shares. During day, the scrip touched a high of Rs 21.4 and some profit booking show the stock closing the day at Rs 18.6.

The rights issue is being offered at par and the company is issueing one share for every two shares held in the company. Post-issue, the equity will swell from Rs 51 crore to Rs 76 crore.