Calcutta, June 28: Investors welcomed B.K. Birla’s proposal to hand over Kesoram Industries to grandson Kumar Mangalam Birla.

Heavy buying pushed the stock price up 7.4 per cent on a day when the sensex recorded modest gains.

Kesoram Industries shares jumped close to 15 per cent during early trade.

After hitting an intra-day high of Rs 464, the stock gave up some of its gains to end at Rs 435.50 against its previous close of Rs 405.50.

The volume traded on the Bombay Stock Exchange was also 4.5 times higher than the last two weeks’ average.

The stock spurt comes just a day ahead of the company’s 88th annual general meeting.

Manjushree Khaitan, the younger daughter of B.K. Birla and a board member of Kesoram Industries since 2001, usually attends the annual general meeting with her father, who is the chairman of the company.

According to B.K. Birla’s earlier succession plan, Manjushree was tipped to get control of Kesoram Industries.

However, the patriarch disclosed the altered plan yesterday.

Along with Kesoram Industries, Kumar Mangalam will get Century Enka and Century Textiles and Industries.

“Though Kesoram is a diversified company with interest in tyres, spun pipes and chemicals, cement is the backbone of the company. Stock markets expect the synergy between Kumar Mangalam’s cement empire and Kesoram to unleash greater shareholder value in the future,” an analyst said.