Stocks of Mumbai-based Hexaware Technologies and Piramal Healthcare surged on acquisition rumours despite the companies’ promoters denying any such move.
Shares of Hexaware Technologies, an information technology service provider, gained 100 per cent in intraday trading to Rs 42 a share on the Bombay Stock Exchange (BSE). The stock closed 65.6 per cent higher at Rs 33.3 a share.
“We are not selling any stake nor are we planning to acquire any company. Neither are any of our large private equity investors selling their shares,” said Atul Nishar, founder and chairman of Hexaware.
More than 200,000 shares of the company changed hands On Thursday on both BSE and the National Stock Exchange (NSE). Since the company is listed for derivatives trading under futures and option on NSE, there is no circuit limit for trading of the stock.
Meanwhile, Piramal Healthcare’s shares hit the 10 per cent upper circuit and closed at Rs 200.95, 9.75 per cent higher than its previous close on BSE.
The US arm of investment banker Credit Suisse is believed to have got the mandate for finding a buyer for the company. GlaxoSmithKline and Sanofi Aventis are speculated to be the bidders, offering a price as high as $1.5 billion.
Piramal Healthcare has been denying any such move since Saturday. An email sent to the company On Thursday did not get any response.
“Some speculative elements were playing in the market On Thursday,” said Amitabh Chakraborty, head of research at the Mumbai-based brokerage Religare Securities. “Lots of mid-cap firms have shown good movement,” he said.
