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Jindal Saw drops after board allots CCDs to a promoter group company

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Capital Market
Last Updated : Dec 08 2014 | 9:39 PM IST

Jindal Saw dropped 3.17% to Rs 108.60 at 14:50 IST on BSE after the company said its board of directors at a meet held on 5 December 2014, allotted Compulsorily Convertible Debentures to Four Seasons Investments, a promoter group company.

The company made the announcement after market hours on Friday, 5 December 2014.

Meanwhile, the BSE Sensex was down 266.48 points, or 0.94%, to 28,191.62.

On BSE, so far 7.84 lakh shares were traded in the counter, compared with an average volume of 11.31 lakh shares in the past one quarter.

The stock hit a high of Rs 113.90 and a low of Rs 106.05 so far during the day. The stock hit a 52-week high of Rs 115.80 on 5 December 2014. The stock hit a 52-week low of Rs 45 on 13 December 2013.

The stock had outperformed the market over the past one month till 5 December 2014, rising 41.16% compared with 1.94% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 41.16% as against Sensex's 5.3% rise.

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The mid-cap firm has an equity capital of Rs 55.24 crore. Face value per share is Rs 2.

Jindal Saw's board has allotted 4.35 crore Compulsorily Convertible Debentures (CCDs) at Rs 81.10 per CCD to Four Seasons Investments, a Promoter Group company.

Allotment price of CCDs was at a discount of 25.32% to the ruling price of shares.

Jindal Saw's net profit jumped 239.8% to Rs 74.61 crore on 29.5% rise in total income to Rs 1618.96 crore in Q2 September 2014 over Q2 September 2013.

Jindal Saw. a part of the O.P. Jindal Group, manufactures large diameter submerged arc pipes and spiral pipes for the energy transportation sector; carbon, alloy and stainless steel seamless pipes and tubes manufactured by conical piercing process used for industrial applications; and Ductile iron (DI) pipes for water and wastewater transportation. Besides these, the company also provides various value added products like pipe coatings, bends and connector castings to its clients.

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First Published: Dec 08 2014 | 2:32 PM IST

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