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Hinduja Foundries jumps as board approves GDR issue

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Capital Market
Last Updated : Jan 27 2016 | 11:47 AM IST

Hinduja Foundries rose 4.95% to Rs 35 at 10:28 IST on BSE after the company said it has decided to raise up to Rs 400 crore by issuing Global depository receipts to promoters.

The announcement was made after market hours on Monday, 25 January 2016. The stock market was shut on Tuesday, 26 January 2016, for Republic Day Holiday.

Meanwhile, the BSE Sensex was up 19.80 points, or 0.08%, to 24,505.75.

On BSE, so far 400 shares were traded in the counter, compared with an average volume of 2,244 shares in the past one quarter. The stock hit a high of Rs 35 and a low of Rs 34.10 so far during the day. The stock hit a 52-week high of Rs 41.95 on 3 February 2015. The stock hit a 52-week low of Rs 26.55 on 4 September 2015. The stock had underperformed the market over the past one month till 25 January 2016, sliding 6.45% compared with 5.24% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 0.45% as against Sensex's 10.87% fall.

The small-cap company has an equity capital of Rs 72.65 crore. Face value per share is Rs 10.

The board of directors of Hinduja Foundries has approved a proposal to issue Global depository receipts (GDRs) to promoters, promoter group, group companies and any other entity, which is a subsidiary, associate of its parent, group companies or any other entity eligible to invest in GDR for an amount up to Rs 400 crore.

Hinduja Foundries reported a net loss of Rs 95.72 crore in Q2 September 2015 as against net loss of Rs 58.46 crore in Q2 September 2014. Net sales declined 15.61% to Rs 156.31 crore in Q2 September 2015 over Q2 September 2014.

Hinduja Foundries is India's largest foundry group with the capacity to produce cylinder block and head ranging from 25 kilograms (kgs) to 500 kgs. From castings for automobiles and tractors to industrial engines, construction equipment and power generation equipment, Hinduja Foundries meets the stringent requirement of diverse segments. It even caters to the exceptionally high standards of defence applications.

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First Published: Jan 27 2016 | 10:38 AM IST

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