Tyre yarn unit selloff perks up NRC

DALAL STREET SPIKES

NRC ended higher in a subdued market after the company announced that it has entered into an agreement with Nirlon to purchase their Nylon-6 tyre yarn plant for Rs 60 crore.

The stock gained 8.8 per cent to close at Rs 49.1 after hitting the day's high of Rs 50.90. More than 29.5 lakh shares changed hands at the counter on BSE alone.

In addition to this, the company has also planned to increase the tyre cord fabric capacity to cater to the requirement of the tyre industry.

This acquisition will increase company's nylon tyrecord capacity by 60 per cent to 12000 tpa, the company said. The stock has witnessed a sharp surge in the past two months. From a low of Rs 27.35 on January 20, 2005, the scrip has risen 81.4 per cent in a short while to Friday's close of Rs 49.10.

Sources said, the sharp rise in the stock price in the past two months was on the back of rumours that the company will realise large sum from selling off its real estate property.