DCM Shriram up 15% ahead of board meet for buyback, bonus

Moneycontrol Bureau

Investors have been lapping up shares of DCM Shriram Consolidated for the third consecutive session on Thursday ahead of board meeting for buyback decision. The stock rallied nearly 22 percent in three sessions to touch a 52-week high of Rs 70.35 apiece on the BSE.

"A special meeting of the board of directors will be held on February 22, 2014 to consider the report of sub committee of the board to look at all options including share buy-back from the existing shareholders, review of dividends policy, bonus issues etc for rewarding the shareholders," the company said in its filing.

Meanwhile, DCM Shriram on February 07 entered into an agreement with Axiall, LLC (subsidiary of Axiall Corporation, USA) for forming a 50:50 joint venture for polymer compounding business. That business is carried on by the 100 percent subsidiary of the company, Shriram Vinyl PolyTech Private Limited.

At 09:49 hours IST, the stock climbed 15.19 percent to Rs 69 amid large volumes that jumped over 20 times compared to five-day average. It surged as much as 17.44 percent in early trade.