Fulford (India) was locked at 20% lower circuit at Rs 1,417.25 at 10:58 IST on BSE after the company's promoter Dashtag decided not a make the public announcement of the delisting offer at this time.
The announcement was made during market hours today, 2 December 2014.
Meanwhile, the S&P BSE Sensex was down 86.36 points or 0.3% at 28,473.26.
On BSE, so far 2,190 shares were traded in the counter as against average daily volume of 2,023 shares in the past one quarter.
The stock hit a high of Rs 1,601 so far during the day. The stock had hit a record high of Rs 2,160 on 25 November 2014. The stock had hit a 52-week low of Rs 585.05 on 13 December 2013.
The stock had underperformed the market over the past one month till 1 December 2014, sliding 2.71% compared with Sensex's 2.49% rise. The scrip had also underperformed the market in past one quarter, advancing 0.26% as against Sensex's 6.3% rise.
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The small-cap company has equity capital of Rs 3.90 crore. Face value per share is Rs 10.
Dashtag, the promoter of Fulford (India) said that since the announcement of the delisting proposal, it has noted an abnormal upward spurt in the share price of Fulford (India) to levels substantially higher than the floor price and indicative price. By a letter dated 16 June 2014, Dashtag also informed Fulford (India) that it did not believe that a spurt in Fulford (India)'s share price was reflective of the business fundamentals of Fulford (India) and that Dashtag does not intend to make acquisitions that do not satisfy its financial expectations.
Subsequently, the share price of the Fulford (India) has continued to remain substantially higher than the floor price and indicative price, the statement said. Dashtag still believes that the current share price of Fulford (India) is not reflective of its business fundamentals, it added. In the circumstances, in view of the current share price of Fulford (India) being substantially higher than indicative price of Rs 1,150 per share for the delisting, Dashtag has decided not to make the public announcement of the delisting offer at this time, the statement said.
Dashtag further noted that the shareholder approval is valid for a period of twelve months. In the event that market conditions align with the financial expectations of Dashtag during such period, Dashtag may take a decision to proceed with the public announcement of the delisting offer, failing which it may consider other strategic alternatives in relation to its ownership of shares in Fulford (India). Dashtag will keep the board of directors of Fulford (India) informed of any development in this regard, the statement said.
Dashtag also said that the Securties and Exchange Board of India (Sebi), vide a press release dated 19 November 2014, proposed some changes to the delisting regulations, the implications of which will need to be evaluated.
Promoter Dashtag held 74.96% stake in Fulford (India) (as per the shareholding pattern as on 30 September 2014).
Fulford (India) reported 53.5% rise in net profit to Rs 6.71 crore on 7.9% growth in net sales to Rs 64.39 crore in Q2 September 2014 over Q2 September 2013
Fulford (India) manufactures antibiotics and anti-allergy products.
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