Galaxy takes to the skies on pref allotment news

DALAL STREET SPIKES

Galaxy Entertainment stock hit the roof on preferential allotment to Pantaloon Retail. The stock, in the last two days, has jumped by 20 per cent to Rs 62.30, backed by impressive volumes of nearly 3 lakh shares on BSE alone.

The company has decided to allot 20 lakh shares on the preferential basis to Pantaloon Retail at Rs 44 per share (including premium of Rs 34).

The allotment is at a substantial discount to the ruling market price. From a low of Rs 24 on 25 January 2005, the stock jumped more than 158 per cent to today's close of Rs 62.30.

Galaxy Entertainment has interests in films, restaurants and has a Sports Bar adjacent to Pataloon's retail store 'Big Bazar' at Phoenix Mills in Mumbai.

The company, however, reported a dismal December ended quarter results. The company's net profit was down by 63 per cent to Rs 0.25 crore, with sales declining 37 per cent to Rs 3.28 crore.