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BOC spurts 50%
FE INVESTOR BUREAU
MUMBAI, Dec 29: BOC India has shot up by 50 per cent on the Bombay Stock Exchange in the past 11 trading sessions. The scrip started its upward journey from Rs 39 on December 9 and touched a high of Rs 58 on December 26 (9200 shares were traded on the day) before falling to the current level of Rs 53.5. The rally started following the report that the Calcutta-based industrial gases major, has bagged a Rs 7-crore contract to supply cylinder gases to Reliance Industries' Jamnagar refinery. Also, the buoyancy in the scrip is a reflection of the fact that the foreign promoter, BOC Plc, has raised its stake by 3.8 per cent to 54.8 per cent followed by a short-fall of almost 10 per cent in its Rs 13-crore rights issue.When the rights issue priced at Rs 60 was open, the scrip touched a high of Rs 98 on August 4, a premium of 63 per cent to the offer price. After touching that peak, the scrip fell to a low of Rs 70.5 after the close of the issue. After the closure of the issue, the scrip saw a steady fall to Rs 39
(35 per cent discount to the offer price). BOC will meet Reliance Industries' plant's requirement of cylinder gases in the first phase of its setting up (at a total cost of Rs 14,500 crore). Reliance's Jamnagar unit will be the world's largest single stream line refinery. The supply to the refinery will be coming from the BOC's Taloja and Tarapur plants in Maharashtra. The company is also planning to increase its capacity for gases from 400 tonnes per day to 2000 tonnes per day in its facilities in Jamshedpur and Dolvi.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
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