It is not surprising that Bombay Stock
Exchange (BSE) received an important notice about a Stock and on disseminating it stock reacted immediately with an
upper circuit.
However, the news was already published
in newspaper a day before.
This is about Adani
Transmission Ltd (BSE Code: 539254).
I will reproduce the words appearing in the BSE Website, Adani Transmission, with
exchange dissemination time:
“Exchange Received Time
10/10/2017 10:09:58
Exchange
Disseminated Time 10/10/2017 10:10:05 Time Taken 00:00:07
Submission
of Media Release relating to entering into a period of Exclusivity with
Reliance Infrastructure Limited (RInfra) until January 15, 2018 in relation to discussions
for the proposed acquisition of the integrated business of generation,
transmission and distribution of power for Mumbai City from RInfra.”
On 10:09 a.m the price was Rs.181.00 by 10:12 a.m. the stock hit upper
circuit Rs.193.15.
Business Line newspaper (online
dated October 09, 2017) reported the following (select portion from the online news is presented below):
“MUMBAI, OCTOBER 9: Anil
Ambani-led Reliance Infrastructure Ltd (RInfra) has announced transferring its
Western Region System Strengthening Scheme (WRSSS) transmission undertakings to
its two subsidiaries as part of the
process to sell the businesses to Adani Transmission Limited.
RInfra and Adani Transmission have signed a binding termsheet
agreement for RInfra’s three operational
transmission projects —WRSSS B, WRSSS C and Parbati Koldam Transmission Company
Limited (PKTCL), which is a joint venture company of RInfra and Power Grid
Corporation of India (each having 74 per cent and 26 per cent equity
respectively) in 2016.
Under this transaction, Adani Transmission
would acquire 100 per cent ownership in WRSSS B & C and 74% ownership in
PKTCL. WRSSS B & C transmission projects and stake in PKTCL …...”
Post reading the news in Business Line (assuming news was published post exchange closing hours) next morning i.e. 10th
October 2017 at 9.15 a.m. Adani Transmission should have hit upper
circuit.
However, the curious aspect, information was already intimated to
BSE by Reliance Infrastructure Limited (BSE Code : 500390) on October 09, 2017 at Exchange Received
Time 09/10/2017
14:49:56 Exchange Disseminated Time 09/10/2017 14:50:00.
It appears Adani Transmission Ltd intimated the news late to BSE.
Will BSE officials take cognizant of it and take action on Adani Transmission Ltd for not submitting news on the same day itself.
A vigilant investor / the reporter / Reliance Infra shareholder could have purchased Adani Transmission Ltd on
October 09,2017 at 3.00 p.m. when the rate was Rs.174.25 and enjoyed a 10% return on next day.
Reference:
http://www.bseindia.com/corporates/ann.aspx?scrip=539254&dur=A&expandable=3http://www.thehindubusinessline.com/companies/reliance-infrastructure-a-step-closer-to-divest-power-transmission-assets-to-adani-group/article9895452.ecehttp://www.bseindia.com/xml-data/corpfiling/AttachLive/0f80d55d-3a99-46d6-8264-287235d73eb4.pdf
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