J Kumar, Prakash Inds Plunge 20%
AT LOWER CIRCUIT Investors rush to sell the stocks given the prevailing uncertainty
Mumbai: Shares of J Kumar Infraprojects and Prakash Industries, in which trades were allowed on Friday by the Securities and Appellate Tribunal (SAT), hit the 20% lower circuit as investors rushed to sell both of these stocks because of the uncertainty created by the Sebi order on shell companies. Prakash Industries closed at ₹ 111.20, and J Kumar Infraprojects plunged to ₹ 226.95. The daily permissible fall in both stocks is 20%. The two companies were among the 331 companies in which market regulator asked the stock exchanges to restrict trading on August 7.
All these stocks mentioned by the regulators were moved to special segment called graded surveillance measure (GSM) by stock exchanges where the shares are allowed to trade only on first Monday of the month with no upward movement in price with additional surveillance deposit of 200% of trade value to be deposited by the buyers. On Thursday, SAT stayed tra- ding restrictions imposed on JKumar Infraprojects and Prakash Industries. Several funds such as HDFC AMC (3.7%), Goldman Sachs (3.6%), RBS (2.8%), UTI (2.5%) and Blackrock (5%) were investors in J Kumar Infraprojects, while investors in Prakash Industries include BNP Paribas (3.4%), Sunidhi Capital (2%), and Rakesh Jhunjhunwala (1%).