IRB Infra rebounds by 7% on clarification on stock-rigging

IRB Infra rebounds by 7% on clarification on stock-rigging

Mumbai: After hitting a 52-week low in the early trade, shares of IRB Infra bounced by 7% after the company denied any involvement in share-rigging.

According to the media reports yesterday, the Intelligence Bureau suspects stock rigging by IRB Infra, Ruchi Soya, Karuturi Global and KS Oil and has sent a report on this to the CBI and Sebi to investigate.

Reacting to this, the IRB Infra scrip had slipped by 2.1% to hit an-year low of Rs186.40 on the Bombay Stock Exchange (BSE) this morning.

However,IRB Infra in a filing to BSE on Thursday denied any involvement in rigging of its shares and said that it “has not received any official communication in this regard from the Capital Market Regulator or Exchanges or any other Authorities."

The statement had the company scrip rebound by 6.74% to touch an early high of Rs203.25.

Stock rigging can be described as attempts to pump up a company’s stock price by floating favourable news about the company’s earnings.

Meanwhile, Ruchi Soya and KS Oil continued to register sharp losses despite denying involvement in the rigging of shares. Ruchi Soya was quoting 3.3% lower at Rs86.35 a share and KS Oils was trading down by 14.6% at Rs29.25.