TALK of a bonus issue saw a brief euphoria grip the Gail counter on the bourses on Tuesday. News that its subsidiary Ratnagiri Gas and Power (RGPPL) will come out with an IPO to raise Rs 1,000 crore by end 2008, saw the scrip gain nearly 3% in ten minutes. The counter, however, lost steam thereafter. When contacted, the Gail management strongly denied any such move. The scrip that had closed at Rs 393 on Monday, gained almost 7% on Tuesday at Rs 420, before the news struck, only to end the day at similar levels after hitting an intra-day high of Rs 436. Gail ended FY-07 with accumulated reserves worth 12.5 times its paid-up equity, which makes it susceptible to bonus rumours from time to time.
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