Shares of Jai Corp Limited vaulted 10% to Rs 221.30 on reports in a section of media that the Chairman of Reliance Industries Limited, Mukesh Ambani, is in talks to buy Jai Corp's 24% stake in Navi Mumbai Special Economic Zone.
According to reports, Mukesh Ambani is dicussing the plan through his personal investment firms.
Following the surge in price of the stock, the exchanges sought clarification from Jai Corp to verify the accuracy of the news item. Jai Corp has clarified that the news is purely speculative and that the report has not quoted any source attributable to the company.
Jai Corp shares spurted to Rs 223.30 right at the stroke of the opening bell, gaining 10%. However, subsequent to the clarification from the company about the acquisition talks report, the stock retreated and declined to Rs 210.80. At present, it is hovering around Rs 215, still up with an impressive gain of almost 6%.
On BSE, the Jai Corp counter has clocked a volume of nearly 2.1 million shares so far in the session, as compared to average daily volume of about 1.05 million shares. The major chunk of today's volume of business at the counter took place in the opening minutes of the session. Volume turned thin as the session progressed.
On the National Stock Exchange, over 10 million shares have changed hands so far at the Jai Corp counter today.
The stock has come a long way up north from a low of Rs 68.05 it had touched on 1 February 2017.
Recently, the Maharashtra government's City and Industrial Development Corporation gave its nod for conversion of Navi Mumbai Speical Economic Zone project into an industrial city.
Jai Corp, SKIL Infrastructure and Mukesh Ambani-promoted Dronagiri Infrastructure own a 74 percent stake in the NMSEZ, while CIDCO owns the rest.