Shares of Vardhman Textiles Ltd. rose to the highest since March as promoter continued to raise its stake in the textile products maker.
Vardhman Holdings Ltd. acquired 5,891 shares of the company worth Rs 53 lakh on Friday through an open market transaction, according to data available on exchanges. The promoter had also acquired 11,620 shares worth Rs 1.02 crore on Thursday and another 9,000 equity shares worth Rs 78.65 lakh on Wednesday Dec. 2.
With this, Vardhman Holdings now holds a 26.88% stake in Vardhman Textiles.
The promoter has been raising its stake in the company since the beginning of November, and has since acquired more than 85,000 shares. Vardhman Holdings, at the start of November, held 26.75% stake in the company.
Another reason for the rally in stock price could be possible opportunities emerging from the U.S. banning cotton imports from Chinese producer XPCC.
The U.S. Customs and Border Protection Agency, according to several media reports including Reuters and the South China Morning Post, said its ‘Withhold Release Order’ would ban cotton and cotton products from XPCC on use of forced labour, as the world’s largest economy expands economic pressure on China.
Shares of Vardhman Textiles ended 4% higher at Rs 959.3 apiece—the highest since March this year. The stock also gained for the fifth straight day, and has gained more than 20% during the period.
Of the six analysts tracking the company, five have a ‘buy’ rating and one suggest a ‘hold’. The average of Bloomberg consensus 12-month target prices implies an upside of 15.1%.
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