JBF Ind hits 5% upper circuit for 2nd straight day on RIL takeover buzz

Shares of JBF Industries were locked in the 5 per cent upper circuit for the second straight day at Rs 26.30 on the BSE in Thursday's session on reports that Reliance Industries (RIL) looks set to take over the company with CFM Asset Reconstruction Company (ARC).

The stock of the polyester manufacturer has gained 15 per cent in the past three days. It hit a 52-week high of Rs 50.20 on July 6, 2021.

Currently, JBF Industries is trading under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed. Till 02:06 pm, a combined 389,870 shares had changed hands and there were pending buy orders for 601,627 shares on the NSE and BSE.

Meanwhile, the stock of RIL hit a new high of Rs 2,496.95, up 3 per cent, surpassing its previous high of Rs 2,479.85 touched on September 6, 2021.

On clarification, RIL in an exchange filing said that there are no negotiations that are taking place for Reliance to takeover JBF Industries or its assets. “The company evaluates opportunities that come its way on an ongoing basis. There is no information which has not been announced to the stock exchanges,” the company said.

Meanwhile, JBF Industries said the company informed exchanges about the notice received from CFM Asset Reconstruction Pvt Ltd. under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("Sarfaesi") and Rules framed thereunder. The company has not received any communication from lWs. Reliance Industries Ltd about the takeover as mentioned in today's Financial Express, JBF Industries added on clarification of news report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel