Why Foods & Inns shares rallied 40% in a month
On April 11, Derive Investment purchased 7,92,000 shares representing 4.72 per cent stake in Foods & Inns for Rs 14.58 crore via block deal
Shares of Foods & Inns zoomed 20 per cent and locked in the upper circuit on the Bombay Stock Exchange after RK Damani's Derive Investments on Thursday bought nearly 5 per cent stake in the company through open market transaction. The shares have been on a gaining spree and rose over 40 per cent in the last one month after the company announced issue of bonus shares.
On April 11, Derive Investment purchased 7,92,000 shares representing 4.72 per cent stake in Foods & Inns for Rs 14.58 crore via block deal. According to BSE data, the company acquired shares at a price of Rs 184.06 apiece. Among others, Goutam Jain & Sons (Huf), Kailash Jain & Sons and Deep Chand Raghu Nath Mal purchased 1,00,000 shares each.
In line with benchmark indices, shares of the company gained as much as 19.98 per cent to settle at Rs 223.10. The scrip touched an intra-day high and low of Rs 223.10 and Rs 208.10, respectively.
According to data available with exchange, as much as 0.96 lakh shares changed hands on the BSE as compared to two-week average of 2.32 lakh shares.
There was surge in volume trade with 6.18 lakh shares changing hands on the BSE as compared to two-week average of 1.07 lakh shares.
Earlier on March 11, the board of the company recommended issue of bonus shares to the members of the company by capitalisation of its reserves in the ratio of two bonus equity shares of Rs 1 each fully paid-up for every one existing equity share of Rs 1 each fully paid-up (that is in the ratio of 2:1). The company, however, has not yet declared record date for the bonus issue.
Foods and Inns is a multi-locational manufacturer and exporter of a range of processed Tropical fruits pulps, purees and vegetables with state of the art factories in Mumbai, Chittor, Valsad, Sinnar and Gonde (Nasik).
Edited by Chitranjan Kumar