Investor interest in listed jewellery companies continues with SBI Mutual Fund of the State Bank of India hiking its stake in Thangamayil Jewellery by purchasing 3.57 lakh shares of the jeweller in two bulk deals.

Following the two purchases of an additional 3.57 lakh shares, SBI Small and Midcap Fund, which held 2.09% stake or 2.86 lakh equity shares, has seen it holding now rise to 4.69%.

The interest shown by the institutional investor sent the price to a new high. It reached a peak of Rs 223.60 on December 8. SBI MF had purchased the shares at Rs 190.

SBI MF purchased the shares from N Ramachandran, one of the biggest shareholders till date, who reduced his holding in the firm to 1%.

Thangamayil Jewellery is a leading retailer in south India with retail operations in Tamil Nadu. Last year it added 11 new retail outlets and this year is aims at opening 12 new outlets in close proximity to wealthy rural buyers.

In the quarter ended September 30, 2014 the company reported a net loss of Rs 12.45 crore as against net profit of Rs 0.60 crorefor the same period of the previous year. Net sales, however, rose 38.89% to Rs 334.37 crore in Q2 September 2014 over Q2 September 2013.