HDFC Bank Gains Rs 1.08 Crore in Just Two Days After Buying This SME Stock; Back-to-Back Upper Circuit

The SME stock has consistently hit upper circuits on both Wednesday and Thursday

On July 2, 2024, an SME company made a remarkable debut on the NSE SME, delivering an astonishing return of 75.44% against its issue price of Rs 171. The IPO was massively oversubscribed, receiving 92.01 times more bids than available shares. Specifically, the retail category was oversubscribed 74.34 times, the QIB category 94.49 times, and the NII category an impressive 129.91 times.

The company in question is Petro Carbon and Chemicals Limited, a member of the ATHA Group, founded in 2007. It specializes in the production of calcined petroleum coke (CPC), a key material used in the carbon industry. Petro Carbon and Chemicals manufactures CPC from raw petroleum coke (RPC), also known as green petroleum coke, which is crucial for the production of aluminum, steel, and various other carbon-based products.

Their production facility is located in Purba Medinipur, West Bengal, with a production capacity of approximately 93,744 tons of CPC per annum, spanning an area of around 30 acres.

On Thursday, the stock of Petro Carbon and Chemicals Ltd hit the upper circuit limit of 4.99%, closing at Rs 347.25. In an intriguing development, HDFC Bank acquired 1,74,400 shares of Petro Carbon and Chemicals at an average price of Rs 285 per share in a bulk deal on July 2, 2024. Since then, the SME stock has consistently hit upper circuits on both Wednesday and Thursday, driving the share price up by Rs 62.25 from HDFC Bank's acquisition cost.

With HDFC Bank holding 1,74,400 shares and a gain of Rs 62.25 per share, their unrealized gains amount to an impressive Rs 1.08 crore.

Disclaimer: The article is for informational purposes only and not investment advice.