Date:08/08/2008 URL: http://www.thehindubusinessline.com/2008/08/08/stories/2008080852221500.htm

Back Dividend yield hopes buoy Indiabulls Securities

The stock of Indiabulls Securities has been attracting investors’ interest in the past one week. The stock jumped about six per cent to Rs 75.70 on Thursday and is up about 13 per cent in one week’s time.

Trading volumes also jumped to 38.81 lakh shares against its two-week average volumes of 23.11 lakh shares on the BSE. The higher deliverable traded volume of 57 per cent (on Wednesday on the NSE), indicates genuine buying interest in the counter.

According to marketmen, tax savvy investors are accumulating the stock to benefit from the hefty dividend the company is planning to distribute.

The company has recommended a dividend of Rs 7.50 per equity share (or 375 per cent on the face value of Rs 2 per equity share) for the financial year ended March 31, 2008.

The company has convened an AGM of the shareholders on September 5, to seek their nod for the dividend. Indiabulls Securities has announced a book-closure period from August 29 to September 5 for that purpose.

There are also expectations among a section of market participants that the company might come out with a buyback plan.

K.S. Badri Narayanan