The Donear Industries (Donear) counter witnessed sharp recovery in the last two trading days as UBS Securities Asia bought 10 lakh shares of the company (roughly under 1 per cent of its equity) in a block deal on the NSE on March 1. |
UBS bought the shares at Rs 160.85 a share. The stock recovered after this trigger from 156.75 to close at 172.35. However, on a week-on-week basis, the scrip fell 10 per cent. |
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Donear has well-known brands in India in its product category of suitings, trousers and shirting fabrics. It caters to the premium and middle segments. |
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The company's net profit fell 24.20 per cent in Q3 ended December 2006 to Rs 4.27 crore (Rs 5.63 crore). Net sales rose a marginal 5.20 per cent to Rs 35.12 crore (Rs 33.39 crore). |
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As in December, the promoters hold 75 per cent stake in the company, while public owns a mere 3 per cent and foreign investors 15 per cent. |
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In March 2006, Donear proposed to raise up to Rs 144 crore from a public issue to finance an expansion project, of manufacturing high-end premier shirtings. |
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The objective is to up production capacity to about 17.5 million metres from the current 11 million metres, which is produced at Silvassa. |
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The project is expected to become operational from December 2006. |
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