Fulford (India) was locked at 20% upper circuit at Rs 987.60 at 14:39 IST on BSE, with the stock extending Monday's 20% rally triggered by the company's promoter offering a substantial premium to delist shares of Indian unit.
Meanwhile, the BSE Sensex was down 125.62 points, or 0.56%, to 22,505.99
On BSE, so far 1,322 shares were traded in the counter compared with pending buy orders of 6.08 lakh shares at maximum limit. The stock has an average daily volume of 1,371 shares in the past one quarter.
The stock opened with an upward gap, surging by the maximum 20% daily circuit and remained locked at the 20% level at Rs 987.60 so far in the day, also its 52-week high. The stock had hit a 52-week low of Rs 450 on 1 August 2013.
The small-cap stock had outperformed the market over the past one month till 28 April 2014, surging 19.31% compared with the Sensex's 1.31% rise. The scrip, however, underperformed the market in past one quarter, rising 9.41% as against Sensex's 9.42% rise.
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The company has an equity capital of Rs 3.90 crore. Face value per share is Rs 10.
Shares of Fulford (India) gained by maximum permissible level of 20% to settle at Rs 823 on Monday, 28 April 2014 after Fulford (India) after market hours on Friday, 25 April 2014 said that the company has received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of the company. The indicative price for the delisting was fixed at Rs 1150 per share, a 67.67% premium over Fulford (India)'s closing price of Rs 685.85 on the BSE on Friday, 25 April 2014.
Dashtag, the promoter, plans to acquire 9.76 lakh shares, representing 25.05% of the paid-up equity share capital of Fulford (India). Promoters owned 74.95% stake in Fulford (India) as on 31 March 2014.
Dashtag's objective in making the delisting offer is to obtain full ownership of the target company, which will provide enhanced operational flexibility to the acquirer's business in India. Additionally, the foreign promoter believes that on account of low liquidity in Fulford (India)'s equity shares, the delisting offer would provide the public shareholders with an ability to exit fully at an attractive price.
The acquirer is of the view that the indicative price is an attractive price for the public shareholders of the target company subject to the acquirer's right to accept or reject the price finally discovered pursuant to the reverse book building process under the delisting regulations, Fulford (India) said.
Meanwhile, the board of directors of the company at their meeting held on Saturday, 26 April 2014 approved the delisting offer and intends to seek the approval of the shareholders through a postal ballot in terms of the delisting regulations. The floor price for the delisting offer has been set at Rs 701.71 per share, Fulford India said in a statement.
Fulford (India) reported net profit of Rs 3.48 crore in Q4 December 2013 as compared to net loss of Rs 1.03 crore in Q4 December 2012. Net sales rose 1.5% to Rs 55.83 crore in Q4 December 2013 over Q4 December 2012.
Fulford (India) manufactures antibiotics and anti-allergy products.
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