Shares of polyester manufacturer JBF Industries rose 5% for the second straight day at Rs 26.30 on the BSE in Thursday’s session.
This surge is amid reports that Reliance Industries (RIL) looks set to take over the company with CFM Asset Reconstruction Company (ARC). The stock of the polyester manufacturer has gained 15% in the past three days. Moreover, it hit a 52-week high of Rs 50.20 on July 6, 2021.
Currently, JBF Industries is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed. Till 02:06 pm, a combined 389,870 shares had changed hands. In addition, there were pending buy orders for 601,627 shares on the NSE and BSE.
Meanwhile, the stock of RIL hit a new high of Rs 2,496.95, up 3%. It has thus surpassed its previous high of Rs 2,479.85 touched on September 6, 2021. On clarification, RIL in an exchange filing said that there are no negotiations that are taking place for Reliance to takeover JBF Industries or its assets.
The company said the following. “The company evaluates opportunities that come its way on an ongoing basis. There is no information which has not been announced to the stock exchanges.”
Furthermore, JBF Industries said the company informed exchanges about the notice received from CFM Asset Reconstruction Pvt Ltd. This notice comes under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“Sarfaesi”) and Rules framed thereunder.
The company has however also mentioned that it has not received any communication from Reliance Industries Ltd about the takeover.