What’s in a name? A lot, if it’s ‘oxygen’

Mumbai: Is it a case of mistaken identity or are punters using its name to pump and dump? With the country facing a severe shortage of oxygen, there is a frenzy in shares of oxygen and industrial gas manufacturers. Amid this rush, a little-known penny stock Bombay Oxygen is witnessing its best run in three years. What’s odd here is that Bombay Oxygen is a non-banking finance company (NBFC) and is not in oxygen business.

The stock more than doubled in the past 20 days from Rs 11,200 to Rs 24,575. The stock ended at a 5% upper circuit on Monday.

Market participants said Bombay Oxygen is being pushed as one of the beneficiaries of oxygen shortages in the country. Bombay Oxygen, which had a miniscule industrial gas business, discontinued it in August 2019.


“It's pumped as oxygen manufacturing company dealing in Industrial gases on social media. Funny thing is it discontinued this business 2 years ago....,” said Amit Kumar Gupta, head of portfolio management services, Adroit Financial Services in a tweet. “Someone desperately wants an exit.”

Bombay Oxygen is currently registered as a non-deposit taking NBFC. The company had reported a turnover of Rs 50 crore for the nine months ending December 31, 2020. Its net profit was Rs 49 crore.