Man Industries (India) surged 5.44% to Rs 72.70 at 12:43 IST on BSE after the firm said that its board at a meeting held on 15 September 2013, approved a scheme of arrangement involving its saw pipes business & real estate and infrastructure business
The announcement was made on Sunday, 15 September 2013.
Meanwhile, the S&P BSE Sensex was down 50.79 points or 0.26% at 19,681.97.
On BSE, 48,000 shares were traded in the counter as against average daily volume of 23,281 shares in the past one quarter.
The stock hit a high of Rs 80 and a low of Rs 71.25 so far during the day. The stock had hit a record high of Rs 238.35 on 1 October 2012. The stock had hit a 52-week low of Rs 57 on 28 August 2013.
The stock had underperformed the market over the past one month till 13 September 2013, sliding 12.94% compared with the Sensex's 2.62% rise. The scrip had also underperformed the market in past one quarter, declining 23.6% as against Sensex's 4.81% rise.
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The small-cap steel pipe maker has equity capital of Rs 29.88 crore. Face value per share is Rs 5.
Man Industries (India)'s board has observed that the Pipe business and Real Estate Construction/Development business have tremendous growth and profitability potential and therefore both the business activities require focused leadership and management attention. The nature of risk and competition involved in the demerged business is distinct from pipe business. In a scheme of arrangement, shareholders of Man Industries will be entitled to free issue of for every one fully paid-up equity share of Rs 5 each held by the equity shareholders in Man Industries, one fully paid-up equity share of Rs 5 each of Man Infraprojects will be given, which will be a listed entity.
Commenting on the development, Mr. R. C. Mansukhani, Chairman, Man Industries (India) said, "The family settlement entered into with Mr. J C Mansukhani has put an end to the dispute and misunderstandings."
Man Industries (India) said it is confident that the demerger will enhance value of its shareholders, and provide fresh momentum for growth in the both the business verticals. The proposed demerger will allow the Group to improve performance significantly by capitalizing the opportunities, the company said in a statement.
Man Industries (India)'s consolidated net profit fell 91.4% to Rs 1.69 crore on 58.4% decline in net sales to Rs 143.18 crore in Q1 June 2013 over Q1 June 2012.
Man Industries (India) is the flagship company of Man Group. The main business line of Man Industries includes manufacturing & coating of large diameter carbon steel pipes and real estate.
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