Filatex gains 9% in a weak market

Any positive gesture from promoters can help keep shareholders' confidence high even when market conditions are not favourable. Or so believed a few brokers who were a bit surprised by a sudden spurt in the shares of a small-cap textiles company Filatex India, an otherwise low-profile counter, in a generally weak market on Wednesday.

They found the triggers in the promoters' move to convert warrants and also in the company's proposal to make allotment of fresh shares to non-promoter investors which will be considered in its board meeting on Saturday. Filatex India promoters are converting 40 lakh warrants into the equivalent number of shares at 40 apiece, while the stock closed 9% up at Rs 45.9 on the BSE on Wednesday. The counter attracted substantially higher volumes of 2.5 lakh shares, compared with the two week average of 73,000 shares. The gains were recorded amid a healthy delivery ratio - the percentage of shares actually changing hands to the total traded volume - of over 70% on the BSE.