Monday, March 16, 2009

Akruti City leads gainers in 'A' group

Monday,March,16,2009

Mumbai-based realty developer Akruti City surged 19.50% to Rs 1,404.55, extending gains for the seventh session a row. It topped the gainers in BSE's 'A' group. The stock is up 63.70% from a recent low of Rs 858 on 2 March 2009.

The surge in Akruti City stock could be because of low free float. As a result, even a whiff of demand ignites prices. Ninety per cent of the equity was held by the promoters and 1.85% by institutions end December 2008. So there is just 8.2% equity floating in the market. Of this, 6.29% is non-promoter corporate holding. The scrip had risen in a similar manner in September 2008, when the market was abuzz with rumors that Barclays Capital might buy close to 5% stake in the company. The stock had pared gains soon after the management denied such development.

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