Arshiya International: Ambitious plans, insider trades
Amritha Pillay 19 August 2010

The company has been announcing that it has a lot of projects to be launched in the near future. But the trading in its scrip is more interesting than its purported growth plan

Arshiya International Ltd, part of the Arshiya Group, is a listed entity on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It is an integrated supply chain and logistics infrastructure solutions provider.

On 18th August, Arshiya International announced the launch of its first free trade warehousing zone (FTWZ) in Mumbai. The company also announced plans for huge investments in its various other proposed projects.

The shares of Arshiya International have been volatile today, ahead of the launch of the company's first FTWZ. The stock opened at Rs296 on the BSE and Rs300 on the NSE today. It touched a high of Rs305.80 and a low of Rs291.55 on the BSE. Similarly, the stock touched a high of Rs306 and a low of Rs292 on the NSE.

The stock has also gained over the past three days. On 17 August 2010, the stock closed at Rs282.50 on the BSE. On 18th August it closed at Rs292.95 and today it closed at Rs296.75. The stock price has increased by 5% compared to the close on 17th August.

It appears that there has been a lot of insider trading going on in the company before its major launch announcements, based on Arshiya's disclosures to the NSE and BSE. The media has also been flooded with reports on the company's ambitious growth plans.

Before the 18th August announcement, the company disclosed three main insider trades to the BSE. These three trades were undertaken by V Shivkumar and Sandesh Chonkar, both executive directors of the company.

On the other hand, Ashish Bairagra, independent director, Arshiya International, reduced his shareholding in the company to nil from the earlier 0.085% that he had held. The shares were offloaded through a market sale on 22nd July and were intimated to the company on 26th July 2010.

G Hariharan, group legal counsel and head corporate governance, also increased his shareholding in the company from nil to 0.014% through a market purchase of 8,000 shares on 29th July 2010.

On 30th July 2010, the company informed the BSE that Mr Chonkar had purchased 20,000 shares through market purchase. This allotment was made on 29th July 2010.

On the same date, Mr Shivkumar had acquired 21,000 shares through market purchase. This allotment was made on 29th July. On 16th August, the company disclosed that Mr Chonkar had purchased 2500 equity shares through market purchase. This allotment was made on 13th August.

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