Why Dalmia Bharat shares jumped 11% intraday

Shares of Dalmia Bharat rallied over 11 per cent in intraday trade, in an otherwise weak market, on the Bombay Stock Exchange on Wednesday after the Supreme Court ordered restoration of mutual fund units to Dalmia Bharat Group. The apex court on Tuesday directed IL&FS Securities Services (ISSL) to release mutual fund units worth Rs 344 crore to the Dalmia Bharat Group.

Boosted by the development, shares of Dalmia Bharat surged 11.15 per cent to hit 52-week high of Rs 1,690.60 on the BSE. The stock has rallied over 306 per cent in last 12 months from its 52-week low of Rs 406, touched on March 24. The market cap of the company surged to Rs 29,706.47 crore. In contrast, the BSE Sensex was trading at 200 points or 0.4 per cent lower at 50,162.

On the volume front, there was spurt in buying as 20,000 shares changed hands over the counter as compared to two-week average volume of 9,694 stocks.

In August 2019, the Supreme Court had passed an interim order that Dalmia Cement, a subsidiary of Dalmia Bharat, may encash the securities and the said amount which lie in fixed deposit with ISSL.

"The Supreme Court had passed an interim order in August 2019 that DCBL may encash the Securities and the said amount shall lie in fixed deposit with ISSL. Vide an order dated March 16, 2021, the order of August 2019, has been modified by the Hon'ble Supreme Court on an application filed by DCBL," the company said in a filing to the BSE.

"The modification allowed is to the effect that the said Securities of DCBL lying with ISSL be released in favour of DCBL subject to DCBL furnishing requisite Bank Guarantee to the satisfaction of the trial court," it added.

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