Financial Daily from THE HINDU group of publications
Saturday, Jul 09, 2005
Financial Daily from THE HINDU group of publications Saturday, Jul 09, 2005 |
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Markets
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Stock Markets Jyoti Structures jumps on talk of Reliance Energy hiking stake Our Bureau
Mumbai , July 8 THE Jyoti Structures stock gained sharply on Friday on market talks that Reliance Energy, through its investment companies, could increase stake in the company. Reliance Energy Investment Pvt Ltd holds 20 lakh shares (14.47 per cent) in the company, which is into transmission line towers. This stake was bought through private placement last year. On Friday, Jyoti Structures rose 19.68 per cent to Rs 273.30 on the BSE with a volume of 10.23 lakh shares. And on the NSE, it closed at Rs 272.15, up 19.94 per cent, with a volume of 19.99 lakh shares. Brokers said the stock rose on expectation that Reliance Energy or group companies Anil D. Ambani Enterprises may make an open offer. Officials at Anil D. Ambani Enterprises and Jyoti Structures were not available for comments. The reason being put forward by market players for the hike in stake by Reliance Energy and its investment companies is the big expansion plans the company has in the power sector. Jyoti Structures supplies transmission line towers to State electricity boards and other companies in the power generation sector. Brokers said Reliance Energy has mega plans in the power sector. For this, it would need a large number of transmission line towers. It is already setting up a power plant in Dadri (UP). "A stake in a company like Jyoti Structures makes business sense for Reliance Energy as it would lower the cost for the power project," said a top official of a domestic broking firm.
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