As many as 4.65 lakh share were traded on the BSE

The stock has been on the rise since late March 2006. From Rs 303.50 on 22 March, the stock has rallied to close at Rs 588.55 on 11 May 2006. Earlier, the stock has risen on a much slower rate from Rs 225.71 on 2 January 2006, to Rs 303.50 on 22 March 2006.

The disinvestment proposal of Bharat Aluminum Company (Balco) by selling the government's 49% stake in the company to Sterlite Industries, or to the public, will be discussed during the meeting of the core group of secretaries on Saturday.

Sterlite had, in a surprise move some time back, sent a cheque for Rs 1,098.89 crore to the government, asking it to hand over the rump 49% stake to it.

The government has sought legal counsel and it was pointed out that the shareholders' agreement, in which the government promised to sell the rump 49% stake to Sterlite, had no legal binding under the Companies' Act.

As a result, several ministries including Attorney-General Milon K Banerji have, in their pre-meeting notes, pointed out that under these circumstances, it would be better to go in for a public issue instead of a negotiated sale at prices, which may be on the lower side. This is because the price set by SBI Caps does not reflect the current value of the company.

A meeting of the core group on disinvestment held earlier this year, had asked the law ministry to certify that the option being sought by Sterlite to buy up Balco shares was still valid, as 24 months had lapsed since the cut off date.

The problem for the Congress-led government is that Left leaders have opposed the sale. With the secretaries also divided over the issue, the sell off plans may well go into cold storage.

On a consolidated basis, the Sterlite group has posted 67.8% rise in net profit to Rs 395.03 crore for the Q3 ended 31 December 2005 as compared to Rs 235.40 crore for the corresponding quarter of the previous year. Total income jumped 76.3% to Rs 3570.72 crore (Rs 2024.90 crore).

Sterlite Industries is engaged in copper business. It also has a major presence in aluminium, through its subsidiary Bharat Aluminum Company (Balco), and minerals.