This microcap rallies 20% as RK Damani picks 5% stake in firm

New Delhi: Shares of Advani Hotels & Resorts (India) hit the upper circuit of 20 per cent during early trade on Thursday as ace investor Radhakishan Damani picked a stake in the company.

According to a regulatory filing, Radhakishan Damani-backed Derive Investments bought 23.93 lakh equity shares or a 5.17 per cent stake in the company.

Following the update, shares of Advani Hotels & Resorts zoomed 20 per cent to hit the upper circuit limit of Rs 99.45. The stock although gave up some gains to trade at Rs 96.50 at 10.15 am. The scrip settled at Rs 82.90 on Wednesday.


BSE barometer and benchmark Sensex was trading 116.31 points or 0.20 per cent lower at 57,880.37 at the time of writing this report.

The company said that the acquisition was made on February 14 while the allotment of shares was done on February 15. The company announced the deal on February 16.

Shares of Advani Hotels have almost doubled in the last year, whereas the scrip has jumped about 20 per cent in the last month as Covid cases decreased in the country.

The Central Government has written to states to ease Covid-19 related restrictions at the local level, which also aided the market sentiments.