New Delhi, Aug. 19 -- Days before the Shalimar Paints Ltd-Hella Infra Market Ltd share-swap was announced, Shalimar's stock jumped 20% on a seemingly normal trading day on 3 August. Trading volumes were unusually high on that day and the next.

The trades might lead to regulatory scrutiny as the paint company seeks shareholder approval for the deal with the building materials platform, announced on 12 August, two people told Mint.

Shalimar shares opened at Rs.67.68 apiece on 3 August and closed with a 20% gain at Rs.80.01. The traded value reached Rs.34.74 crore, with 4.52 million shares changing hands during the session. On 4 August, the share price added 3.16%, although volumes surged to 10 million.

"There might be some regulatory bac...