Advanta hit a new high today at Rs.442.80 with volumes also showing a robust growth of over 2 times.

This seed company is an associate company of United Phosphorous Ltd which is today recognized as UPL.  The sudden spike up in the stock price is after the UPL, the promoter company hiked its stake in the Advanta through the open market.

The company, in a statement issued to the exchange stated that UPL acquired 1.85 million equity shares representing 2.19% of total equity of the company from open market since September 2014 till February 19, 2015. Post acquisition UPL stake in Advanta increased to 51.97% from 49.78% earlier.

This increase in stake is reassuring as it indicates that the promoter is very much dedicated to the company and putting in more money means the intentions will remain good. These are the kind of assurances which the market needs to know that promotes are not out to sell off the company.