Air Deccan asks Sebi to probe rally in share price
22 May 2007
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New Delhi: Deccan Aviation, which owns India's largest and pioneering budget airline Air Deccan, has sought a probe by market regulator the Securities and Exchange Board of India (SEBI) in the sharp rally in its share price during the past week. The share price of the carrier has shot up dramatically in the recent past on speculation that various parties, including rival airline Kingfisher as well as the Anil Dhirubhai Ambani Group were interested in picking up a stake in the carrier.
In a missive to SEBI, Deccan Aviation has asked it to ascertain the reason behind the abnormal movement in the company's share price. The shares have gained over 16 per cent in the past one week, and nearly 20 per cent in the past one month.
The biggest movement came on May 17 when the stock closed over 15 per cent higher on that day, after registering a gain of over 20 per cent in the intra-day trade. This was the biggest one-day gain for the stock since it's listing about a year ago.
