Jaypee Infratech gains 20% on F1 hopes

MUMBAI: Shares of Jaypee Infratech rose 20% on renewed interest by institutional investors as the upcoming Formula One race to be hosted in India has brought the company into the limelight for constructing the all-new circuit near Delhi.

Analysts said that the project would provide international exposure to the company and also have a rub-on effect on the valuation of Jaypee Group's residential and commercial projects. "We have definitely got international visibility from the F1 project, but so far we have not done an assessment of its impact on our brand," Bipul Pathak, joint president, Jaypee Infratech told ET.

Trading in shares of Jaypee Infratech opened on a positive note at Rs 55.2 and the stock gained further ground subsequently to touch the day's high of Rs 60.7, hitting the 20% upper circuit intra-day. It held firm throughout the session before ending 19.8% up at Rs 60.6.

According to a few stock brokers, some institutional investors are buying shares of the company as the valuation appears attractive after the price corrected to the current level from an issue price of Rs 102 a share.