Equity Market: QIP Plan Sends Rail Stock Soaring in Secular Rally
Jupiter Wagons spoke at West Bengal Investment Summit
Railway Scrips Buzz on Bulls’ Day in Stock Market Today
By S Jha
New Delhi, March 21: Railway stocks were buzzing in the trade on Friday. The gains in the rail stocks came on the back of remarks of Railways Minister Ashwini Vaishnaw in parliament.
Railway stocks across the board gained in trades. Parliament discussed demands for grants of the Ministry of Railways this week.
Vaishnaw asserted in his replies in parliament that Railways will continue to spend on expansion of infrastructure. His thrust on capacity additions in Railways brought bulls to chase the rail stocks.
Shares of Titagarh Wagons gained over seven per cent in the trade. Vaishnaw told parliament that the Railways will rollout the Vande Bharat long distance trains in near future. Titagarh Wagons has plans to manufacture the Vande Bharat trains.
But shares of Titagarh Wagons had gone in a massive correction. From the high of almost ₹2000, shares of Titagarh Wagons are now trading at ₹786. Among the private rail stocks, shares of Titagarh Wagons have been multi-bagger two years ago.
But another Kolkata-based rail stock led the pack of the railway stocks on Friday. Shares of Jupiter Wagons were trading with gains of almost 12 per cent during mid-day on Friday.
The gains in shares of Jupiter Wagons came after the company announced that its calling a board meeting to decide on fund raising. The scrip has also corrected over 50 per cent from its peak. The shares of Jupiter Wagons were trading at ₹353. Its peak has been ₹730.
Jupiter Wagons is also into manufacture of electric vehicles. The company has also bagged contracts from the Indian army to manufacture armoured vehicles.
The management of Jupiter Wagons has not clarified on purpose of the fund raising. The company proposes to raise fund through placements of shares with Qualified Institutional Investors (QIPs).
Conventionally, fund-raising through QIP mode is seen as a signal for capacity expansion. Investors treat companies embarking on capacity expansion favourably. The Jupiter Wagons has, however, not stated the extent of discount at which shares will be offered to the QIPs.
Stock market extended gains on Friday. Nifty was trading with gains of over 180 points. The 50-share index is almost staring at 23400 level.
The Bank Nifty was also trading with gains of over 400 points. The all-round gains in the stock market came on the back of crash in the dollar index.
(This article makes no recommendation for any kind of trades in the stock market)
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