When asked by the exchange to clarify a sudden surge in stock price in the absence of a trigger, a tiny maker of synthetic flooring put the onus back on the bourse to probe and find out.
BSE Ltd. on Oct. 10 wrote seeking a clarification from Premier Polyfilms Ltd. on why the stock price and volumes have spiked, according to an exchange filing by the company. The stock has risen more than 50% since its last low on Sept. 28. The company has a market value of close to Rs 350 crore.
In its response, Premier Polyfilms said the company, its management or the promoters have made no recent announcement about any change in profitability, sales or book order position. No price-sensitive information had been withheld from the exchanges, it said.
"Hence this cannot be the reason for increase in price and volume of the shares," it said.
"Now, we request you to look into the reasons for sudden rise in prices and volume of share of the company, at your own level and take action accordingly," Premier Polyfilms said in its reply. "In the event, if you come across any reasons which can jeopardise the interest of the investors or the company, kindly caution us."
The stock had hit 20% upper band on Oct. 9. It rose over 15% on Thursday to a record high of Rs 160 apiece, with its volumes standing at 8.2 times its 30-day average.
The relative strength was at 81, indicating that the stock may be overbought.
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