McNally Bharat Engineering Company was locked in 20% upper circuit at Rs 94.90 at 10:47 IST on BSE after the company entered into an agreement with EMC and Williamson Magor Group to enable an additional equity investment in the company.
The announcement was made after market hours yesterday, 30 June 2015.
Meanwhile, the BSE Sensex was up 204.05 points, or 0.73%, to 27,984.88
On BSE, so far 2.95 lakh shares were traded in the counter, compared with an average volume of 15,729 shares in the past one quarter.
The stock hit a high of Rs 94.90 and a low of Rs 90.35 so far during the day. The stock hit a 52-week high of Rs 114 on 2 February 2015. The stock hit a 52-week low of Rs 64.55 on 16 June 2015.
The small-cap company has an equity capital of Rs 40.59 crore. Face value per share is Rs 10.
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McNally Bharat Engineering (McNally) said that the company has entered into an agreement with EMC and Williamson Magor Group (existing promoters) to enable an additional equity investment of around Rs 100 crore as primary equity capital into McNally. The board of the company has approved the proposed investment by EMC in the company. Earlier, MKN Investments, a group company of EMC, had made an equity investment of Rs 50 crore in March 2015 in the company and it holds 12.5% stake in the company, McNally said.
The capital raising would be done through a preferential allotment of new shares of 1 crore shares to EMC at a price of Rs 100 per share. After this preferential issue, EMC group (along with MKN Investments) will hold 29.64% of McNally's expanded equity share capital. In addition, as per Sebi guidelines, there will also be an open offer by EMC and Williamson Magor Group for up to 26% of equity share capital of the company, McNally said.
Under an investment agreement entered into by the company, its existing promoters and EMC, McNally would be jointly controlled by the existing promoters and EMC, with both parties having equal board representation in McNally and its subsidiaries.
McNally Bharat Engineering Company reported net loss of Rs 58.74 crore in Q4 March 2015, higher than net loss of Rs 5.68 crore Q4 March 2014. Total income rose 15.2% to Rs 806.44 crore in Q4 March 2015 over Q4 March 2014.
McNally Bharat Engineering Company is a engineering company engaged in providing turnkey solutions in the areas of power, steel, aluminium, material handling, mineral beneficiation, pyroprocessing, pneumatic handling of powdered materials including fly ash handling and high concentrate disposal, coal washing, port cranes, cement, oil & gas, civic and industrial water supply etc.
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