Saurashtra Cement (SCL) jumped 5% to Rs 37.85, the maximum permissible level for the day, even as both firms have began a dialogue-process with the management for a minority stake.

The stock had bounced back from the lower level since mid-December 2005. From a low of Rs 25.80 on 15 December 2005, the stock jumped 39.7% to Rs 36.05 by 6 January 2006.

SCL's board meets on 14 January 2006 to consider various means of raising funds, including an equity issue on preferential allotment basis.

Saurashtra Cement is one of the prominent cement players in the Gujarat market.

Last month, financial institutions had approved the company's debt restructuring package, including the partial remission of interest, other charges, reduction in interest rates, rescheduling of repayments and option to lenders for partial conversion of debt into equity.

Saurashtra Cement carries huge debts. As on 30 June 2005, these aggregate Rs 368.94 crore, of which interest paid itself amounted to a whopping Rs 45.18 crore.