Shares of Kerala-based Kitex Garments Ltd surged nearly 20 percent on Friday amid a company's delegation discussing investment plans with the Telangana government.
The meeting came against the backdrop of Kitex deciding to back out from a plan to invest Rs 3,500 crore in Kerala, with the company's Chairman and Managing Director Sabu M Jacob alleging that he was being "hounded out."
The scrip soared 19.72 percent to close at Rs 140.55 apiece on the BSE even as the benchmark 30-share Sensex closed in the red.
The closing level on Friday is also its 52-week high. Kitex shares opened at Rs 118.30 after ending at Rs 117.40 on Thursday.
On the NSE also, similar trends were witnessed and the scrip closed at Rs 140.85, a gain of 19.97 percent. It opened at Rs 117.75 before touching the 52-week high level.
The gains came on a day when the broader market closed in the negative territory. BSE Sensex ended 182.75 points or 0.35 percent lower at 52,386.19 while the broader NSE Nifty declined 38.10 points or 0.24 percent to close at 15,689.80 points.
On Friday, a delegation led by Jacob met Telangana IT and Industries Minister K T Rama Rao in Hyderabad and discussed about setting up a textile manufacturing unit in the state.
Alleging harassment by the Kerala government officials, Jacob, last week, said his group was withdrawing its project from the state.
Kerala government on Friday said it has an "open approach" towards the issues raised by Kitex group.
"The government is still open... issues can be discussed with the investors and take things forward," Kerala Industries Minister P Rajeev said.
He was responding to Jacob's statement that he was not leaving his home state on his own, but was being "hounded out."