It’s usually stated that the inventory market’s predominant oxygen comes from sentiments. The share worth has hit the roof for a corporation that has the phrase ‘Oxygen’ in its identify regardless that its enterprise has nothing to do with the life-saving fuel — one thing in excessive demand as a result of COVID-19 pandemic.
The share worth of Bombay Oxygen Investments Ltd hit its higher circuit restrict Rs 24,574.85 apiece on the BSE on Monday, with the utmost permissible acquire of 5 per cent as a result of inventory being below surveillance. The similar is the case with another little-known shares with ‘gas’ or ‘oxygen’ of their new or outdated names and all of them are being probed for any doable foul play.
Bombay Oxygen Investments Ltd shares have been witnessing a very sharp rally for a lot of days now and have greater than doubled from about Rs 10,000 degree seen in March-end and the market watchers really feel the one cause for this type of stupendous rally is the identify of the corporate.
However, the information, even by the corporate’s personal admission, are one thing completely different.
On the homepage of its web site, the corporate says it was integrated as ‘Bombay Oxygen Corporation Limited’ on October 3, 1960, nevertheless it modified its identify to ‘Bombay Investments Limited’ with impact from October 3, 2018.
It additional stated the corporate’s “primary business was manufacturing and supplying of industrial gases which has been discontinued from August 1, 2019.”
It “owns substantial financial investments in the form of shares, mutual funds and other financial securities and the income from such financial investments is the source of revenue of the company.”
It has been issued a certificates of registration from the RBI “for carrying on the business of Non-Banking Financial Institution (NBFC) without accepting Public Deposits.”
While a number of market watchers stated the corporate no extra offers in oxygen, there’s a contradiction on its web site, as its ‘products’ part continues to seek advice from oxygen and different industrial gases.
This part nonetheless describes the corporate as ‘Manufacturer and Dealer of Industrial Gases’ and lists oxygen, nitrogen, argon, carbon dioxide as merchandise.
However, the BSE web page of the Mumbai-based firm describes it as an NBFC.
Earlier this month on April 8, the BSE had sought a clarification from the corporate on important motion in its share worth, “in order to ensure that investors have the latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded.”
To this, the corporate had replied “that all the material information and announcement that may have bearing on the operations (or) performance of the company which includes all the necessary disclosures… have always been disclosed by the company within the stipulated time”.
“There is no pending information or announcement which may have a bearing on the price movement of the company. Therefore, the movement in the share price of the company is market-driven and the company is in no way connected with any such movement in price,” the corporate had advised the alternate on April 9.
Since then, the corporate has submitted to the BSE its newest shareholding sample for the quarter ended March 31, 2021 and two regulatory compliance filings for the half-year interval ended March 31, 2021.
In its latest-available monetary outcomes, the corporate had reported a complete revenue of Rs 33.79 crore and a revenue of Rs 31.69 crore for the quarter ended December 31, 2020.
The firm now instructions a market capitalisation of over Rs 368 crore. Promoters personal greater than 73 per cent of the corporate shares, whereas a bulk of the general public shareholding is with small retail traders.