Shares of Telugu Desam Party- (TDP) related firms like Heritage Foods and Amara Raja Energy & Mobility soared up to 20 percent on June 5. The sharp rally came after news reports of TDP chief Chandrababu Naidu is poised to become Andhra Pradesh Chief Minister after the regional party's landslide victory in election and he might support National Democratice Alliance (NDA).
Prime Minister Narendra Modi has secured a third term, but the BJP is relying on the support of other parties in his coalition - JD(U) chief Nitish Kumar and TDP's chief Chandrababu Naidu, falling 32 seats short of the 272 majority mark.
At 1:24 pm, Amara Raja Energy stock was trading 12.5 percent higher at Rs 1,217.55 on the National Stock Exchange (NSE). The company's managing director (MD) Galla Jayadev, also known as Jay Galla, is a former TDP Parliamentary Party Leader. The two-time MP and head of Amara Raja group decided not to contest Lok Sabha elections this year.
“I have decided not to contest in this general election. I come from a family that has a legacy of fighting for people but it is not easy to sail on two boats in one go - to be in public life and also to continue as an entrepreneur. So I have decided to give a pause to my political life,” he said earlier this year.
At the same time, he stated that he will continue to contribute to the development of the country by “investing, innovating, creating employment opportunities and generating revenue and wealth for the nation”.
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Shares of Heritage Foods, another TDP-related firm, surged nearly 20 percent to hit a record high of Rs 544 apiece on NSE on the back of heavy volumes. The Heritage Group was founded in 1992 by TDP Chief Chandrababu Naidu, with three-business divisions- dairy, retail and agri -under its flagship company Heritage Foods.
Nara Lokesh, the son of N. Chandrababu Naidu, is one of the promoters of Heritage Foods. The company has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL).
Heritage Foods' milk and milk products, such as Curd, Ghee, Paneer, flavoured milk, among others, are consumed in 11 states across India.
In the past three trading sessions, Heritage Foods' share price has surged around 38 percent as reports suggest that Chandrababu Naidu is set to become Andhra Pradesh CM for fourth term.
So far this year, the stock has seen a stellar rally of nearly 80 percent, outperforming benchmark Nifty's 3 percent return by a huge margin.
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