Pilani, Nalwa Sons, Tata Investment rally up to 17% in subdued market

Stock exchanges will conduct a special call auction for select investment holding companies on October 28 following the new framework introduced by the Sebi for price discovery.

Shares of holding and investment companies of Indian business houses have rallied by up to 17 per cent on the BSE in Monday’s intra-day trade amid heavy volumes in otherwise subdued market.

The holding companies do not have operations of their own but hold stakes in other assets including shares of other listed companies. These firms mostly hold investments in their own group companies.

Pilani Investment and Industries Corporation (up 17 per cent at Rs 7,356.20), GFL (17 per cent at Rs 116.80), SIL Investment (11 per cent at Rs 810), JSW Holdings (11 per cent at Rs 10,405.25), Nalwa Sons Investments (10 per cent at Rs 7,766), Tata Investment Corporation (9.5 per cent at Rs 7,461.50) and Maharashtra Scooters (8 per cent at Rs 12,509.55) have rallied up to 17 per cent. On the other hand, Kalyani Investment locked in 5 per cent upper circuit at Rs 7,820.50 on the BSE.  In comparison, the BSE Sensex was down 0.01 per cent at 81,218 at 10:50 am.

Stock exchanges will conduct a special call auction for select investment holding companies (holdcos) on October 28 following the new framework introduced by the Securities and Exchange Board of India (Sebi) for price discovery.

The special pre-open session will be held for nine holdcos including Pilani Investments, Kalyani Investments, TVS Holdings, and Maharashtra Scooters. The subsequent list for the special window will be updated later, the exchanges said. 

Sebi had in June issued the new framework along with specified conditions for holdcos to be eligible for the special window. CLICK HERE FOR EXCHAGE CIRCULAR

Among the individual stocks, Pilani Investment hit a record high of Rs 7,356.20, rallying 17 per cent on the BSE in Monday’s intra-day trade. In the last two days, the stock has surged 28 per cent.

Pilani Investment is a group company of Birla Group. The company has a major amount of investments in the group companies of the Birla group. The major amount of income is from dividend from these investments. The company holds significant investments in equity shares of various diversified companies like Century Textiles and Industries, Grasim Industries, Hindalco Industries, UltraTech Cement, Vodafone Idea, Kesoram Industries etc.

Shares of Nalwa Sons Investments also hit a record high of Rs 7,766, locked in 10 per cent upper circuit on the BSE. In one week, the stock zoomed 59 per cent from level of Rs 4,888.85 on October 14.

Nalwa Sons, in a clarification regarding the recent price movement of its stock, stated today that, as of now, there are no events that are material or have an impact on the performance or operations of the company. Furthermore, there are no price-sensitive developments that would require disclosure to the stock exchanges, which could influence the price behavior of the company's shares.

Nalwa Sons is a registered non banking financial company (NBFC) engaged in the business of loans and advances, acquisition of shares and debenture of majorly in the OP Jindal Group.

The company holds significant investments in Equity Shares of OP Jindal Group of companies, therefore the business prospects of the company largely depends on the business prospects of OP Jindal Group of companies and the steel industry.

The company said it will focus on making long term strategic investments in various new ventures promoted by OP Jindal group, besides consolidating the existing investments through further investments in the existing companies.