BF Investment shares rally 20% today, up 60% in 7 sessions. Here's why

BF Investment on Tuesday hit a 20 per cent upper circuit limit for second day in a row, taking its seven-day rally to 60 per cent. The scrip has been rising ahead of the company board meet on January 4, where the board members will consider a proposal of delisting of shares.

The company had in a BSE filing post market hours of December 30 informed stock exchanges about promoters' intention to consider voluntary delisting.

In the BSE filing, BF Investment said Ajinkya Investment and Trading Company, DGM Realties Private Limited and Sundaram Trading and Investment Private Limited, which are members of the promoter and promoter group of the company, will initiate the process of either individually or collectively, as the case may be, acquire all equity shares that are held by public shareholders.

Following the development, the scrip hit its 20 per cent upper circuit limit at Rs 420.10. With this, the stock has taken its 7-day winning streak to 60.43 per cent.

The company has appointed SVD & Associates in accordance with Regulation 10 of the Delisting Regulations to carry out due diligence in accordance with Regulation 10(3) and other applicable provisions of the Delisting Regulations.

BF Investment is a part of $2.5 billion Kalyani Group from Pune. It was formed by demerging investment business of BF Utilities by way of a Composite Scheme of Arrangement. Under the said business restructuring, Investment Business has been transferred to BF Investment.

The company said the promoters intent to voluntarily delist the equity shares from the stock exchanges where the equity shares are presently listed i.e., BSE and National Stock Exchange of India.

The meeting on January 4 will take on record and review the due diligence report and the share capital audit report of the peer review company secretary in terms of the Delisting Regulations.

"The company board will consider and approve or reject the delisting proposal after discussing and taking into account various factors and the peer review company secretary’s due diligence report; and consider other matters incidental thereto or required in terms of the delisting regulations, including seeking shareholders’ approval, as may be required," the company told BSE.

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