BSES scrip zooms

MUMBAI, March 25: Power company BSES8217;s scrip witnessed a massive jump from Tuesday8217;s closing of Rs 200 to Rs 219.40 on takeover rumours. Brokers say rumours of a likely open offer for acquiring BSES at a target price of Rs 280 per share brought the stock back to the limelight.

Interestingly, after having traded in the band of Rs 206-209 till 3 pm, the stock shot up to touch the upper end of the price band on the NSE at Rs 216.30. On the BSE, the stock surged by over 9 per cent to close at Rs 219.40 with a phenomenal volume of 24.5 lakh shares on the exchange. As of now, BSES is not a promoter-managed company, thus making it a vulnerable takeover target. Financial institutions hold over 40 per cent stake in the company. Similarly, Lakme was up 9.98 per cent on news that the company is planning to announce a mega dividend.

On the other hand, India8217;s largest automobile company, Telco8217;s scrip fell today on the BSE following reports that the company8217;s net profit would fall by over 54 per cent for the fiscalending March 31, 1998, as revealed by a survey conducted by a wire agency among financial analysts.

Telco8217;s scrip on the NSE crashed to Rs 284, while on the BSE it fell to Rs 281 before recovering at Rs 284. The sentiment on Telco scrip was also bearish on reports that the company8217;s recently launched utility vehicle, the Safari would be recalled from the market following problems detected in its gear box. Industry sources say the Safari has been getting negative reports from its customers which may lead to the company recalling the vehicles to take corrective steps.