Sebi probing recent rally in Ruchi Soya, Alok Inds | Economic Times

Mumbai: The Securities and Exchange Board of India (Sebi) is probing into the recent jump in the share prices of Ruchi Soya Industries and Alok Industries.The capital market regulator has sought details of unusual trades in the two stocks from stock exchanges, said two people familiar with the matter.BSE and NSE declined to comment while Sebi did not respond to an email query.Edible oil maker Ruchi Soya, which was acquired by Baba Ramdev’s Patanjali Group through a bankruptcy sale, has been one of the top performers on Dalal Street of late.After getting relisted on January 27, Ruchi shares have spiralled 8,819 per cent, valuing the company at about Rs 50,358 crore. The rally helped the company’s market value surpass that of Biocon, JSW Steel, Aurobindo Pharma, Marico and Lupin among others. Under the previous promoters, Ruchi Soya’s highest market value was Rs 4,232 crore in November 2010. In the past three trading sessions, the stock was locked in a lower circuit.76741473Alok Industries, which was re-listed on February 27 after the restructuring of equity, has run up 1,256 per cent since April. The stock was locked at its 5 per cent upper circuit of Rs 55.75 on Wednesday.The Mumbai-based textile manufacturer was acquired by Reliance Industries along with JM Financial Asset Reconstruction Company last year through NCLT.Sebi is investigating whether there have been instances of circular trading in the two stocks, the two people said.Brokers said the presence of strong promoters coupled with lower floating shares have resulted in the jump in the stock prices. But brokers believe that the run-up has been excessive as the broader market is struggling to recover from the sell-off that started on February 19.