Pilani, Vardhman: This is why holding company shares rose up to 20%
Shares of holding and investment companies rose up to 20 percent to trade at their 52-week high on the BSE in intraday trading on Monday in an otherwise subdued market.
Pilani Investment and Industries Corporation (Rs 4,799.95), Kalyani Investment Company (Rs 5,926.70) and Vardhman Holdings (Rs 4,065.05) were frozen on the 20 per cent upper circuit on the BSE at 11.02 am. BF Investment, Nalwa Sons Investment, JSW Holdings and Maharashtra Scooters rose 10 percent to 17 percent. In comparison, the BSE Sensex rose 0.14 percent to 77,317.
Market regulator Securities and Exchange Board of India (Sebi) on Thursday announced a framework for special call auctions without price bands for price discovery of investment holding companies.
Holding companies, or holdcos, do not have their own operations, but have interests in other assets, including shares of other listed companies. These companies often hold investments in their own group companies. There are almost 70 listed holdcos in the Indian market. These typically trade at a higher discount than the intrinsic value of their holdings. Sebi’s new framework attempts to bridge this gap Business standard reported. CLICK HERE FOR THE FULL REPORT
Among individual stocks, Pilani Investments hit an all-time high of Rs 4,799.85 as it was stuck on the 20 per cent upper circuit of the BSE. The company’s main activity is investing and financing activities and all these activities are carried out in India.
Pilani Investment holds significant equity investments in various diversified companies such as Century Textiles and Industries, Grasim Industries, Hindalco Industries, UltraTech Cement, Vodafone Idea, Kesoram Industries etc. Therefore, the company’s business prospects largely depend on its business prospects and performance. of the companies in which it invests.
Vardhman Holdings is a Non-Banking Finance Company (NBFC) registered with the Reserve Bank of India (RBI) and is primarily engaged in investment activities. It follows a strategy of taking a systematic approach to investing across asset classes and keeping the portfolio dynamic as per the changing market conditions.
Kalyani Investment is a core investment company that holds more than 60 percent of its net assets in the form of equity investments of the Kalyani Group Companies, while more than 90 percent of its net assets are in the form of investments in equity/preference shares or debentures/debt of Kalyani group companies.
Shares of Kalyani Investment hit a new high of Rs 5,926.70, up 20 percent today. The stock has risen 25 percent over the past two trading days.
First print: June 24, 2024 | 11:53 am IST