BSE, NSE ask Reliance Natural Resources to explain price spurt
28 Sep 2007
Mumbai: The Bombay Stock Exchange and the National Stock Exchange have sought explanation from the Anil Ambani group firm Reliance Natural Resources Ltd., whose share price has nearly doubled in the past few days, on the back of media reports about its business plans.
From Rs52 at close on September 19, the share price hit a one-year high of Rs103 during trading on September 25, although it ended down at Rs94.85 that day.
Stock market authorities have brought the company under scanner last week and early this week to ascertain if the price movement was normal.
The spurt in stock prices followed media reports that RNRL plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.
RNRL was listed in early 2006 at a price of Rs18.5. After trading at around Rs20 level during January, February, March and April this year, it touched the Rs30-mark in mid-may and entered the Rs40 bracket in July.
After
hitting Rs50 on September 11, its share price peaked to Rs103 on September 25.
The company`s scrip was trading more than four per cent down on the BSE at around
Rs87.15.