Rakesh Jhunjhunwala picks up 10 lakh shares in this smallcap company

Shares of Prakash Industries (PIL) soared over 10 per cent in Thursday’s trade after reports said that big bull Rakesh Jhunjhunwala picked up nearly 10 lakh shares in open market via block deals.

The scrip was trading 10.50 per cent up at Rs 122.65 around 1.40 pm (IST). Benchmark BSE Sensex was up 7.68 points, or 0.02 per cent, up at 31,575.

However it could not be immediately ascertained when did Jhunjhunwala picked up the stake.

Prakash Industries also announced demerger scheme between PIL and Prakash Pipes (PPL). The board also approves raising of funds up to Rs 500 crore through qualified institutional placement (QIP) to eligible investors.

For every eight shares in Prakash Industries as on the record date, the equity shareholders of PIL will receive one share of PPL.

Board of PIL has also approved the calling of the extra-ordinary general meeting on September 23, 2017.

According to management, demerger will unlock potential value in business and help in to achieve faster growth trajectory.

On the BSE, 11.87 lakh shares were traded on the counter so far as against the average daily volumes of 9.19 lakh shares in the past two weeks.

The stock had hit a 52-week high of Rs 146.60 on July 31, 2017 and a 52-week low of Rs 42.05 on December 5, 2016.