NFCL says rumours fuelling scrip price

NFCL scrip rose 17.96% on Friday to Rs 32.50.

Nagarjuna Fertilizers and Chemicals Limited (NFCL) has stated that "market rumours appear to be fuelling the rise in the price" of the company's scrip and advised investors not to base their investment decisions on "unfounded rumours".

Despite a crash in the stock market, the price of NFCL scrip rose by 17.96 per cent on Friday to Rs 32.50 from a close of Rs 27.55 the previous day. The scrip has gained nearly 14 per cent over the past week.

In a press release here, NFCL stated that there was no truth in the speculations that promoters would be selling their stake or that the company would develop its land at Kakinada, in Andhra, as a real estate.

Similarly, the "rumours" that NFCL would sell Nagarjuna Oil Corporation Limited or the company would make additional profit on account of availability of natural gas were unfounded.

There was also no possibility of decontrol of urea till 2010.

The company said gas price was only a reimbursement of actual costs and hence no additional profits were expected to accrue.