Stampede Capital shot up by 1045% from its low in January 2014. With just about 2,700 shareholders on its books, the stock has averaged 500 trades a day
Stampede Capital claims to provide a direct market access platform and algorithmic trading platforms to its clients through co-location facilities at domestic and global stock exchanges. It’s a subsidiary of Stampede Financials, Singapore, a trading member of Singapore Exchange, Dubai Gold and Commodities Exchange, Chicago Mercantile Exchange, the NSE and the BSE. It generated a trading turnover of about Rs60,000 crore in the June 2015 quarter. Its annual report states that it has a co-location facility at the NSE; in July 2014, the NSE approved Stampede TBT (Tick by Tick) Algo, an algo-trading platform. The bulk of revenues is generated by its three wholly-owned foreign subsidiaries. In FY14-15, it generated consolidated revenue from trading of Rs74.17 crore, (Rs23.98 crore). It reported a consolidated net profit of Rs14.53 crore in FY14-15 compared to a loss of Rs0.15 crore in the previous year. But what’s strange in this automated trading company is its stock price movement. In just four months, it shot up 385%, from a low of Rs165 on 27 March 2015, to a peak of Rs800 on 6 August 2015. This rally was shortlived. By 25th August, the stock had crashed 63% to Rs297. On 6 October 2015, the stock closed at Rs397, still up by 1045% from its low of Rs34.70 on 28 January 2014. With just about 2,700 shareholders on its books, over the past 12 months, its stock has averaged a daily trading turnover of Rs2.67 crore with an average of 500 trades a day. Will the regulator investigate this case—such few shareholders and such huge volatility?
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam