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Pennar builds up gains after making further investment in subsidiary

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Capital Market
Last Updated : Nov 25 2016 | 12:01 PM IST

Pennar Industries rose 3.65% to Rs 42.60 at 11:43 IST on BSE after the company announced further investment of Rs 49.5 crore for 49.80 lakh shares in Pennar Renewables.

The announcement was made after market hours yesterday, 24 November 2016.

Meanwhile, the S&P BSE Sensex was up 259.84 points or 1% at 26,120.01

On BSE, so far 14,000 shares were traded in the counter as against average daily volume of 80,918 shares in the past one quarter. The stock hit a high of Rs 42.90 and a low of Rs 41.90 so far during the day. The stock had hit a 52-week low of Rs 38.50 on 29 February 2016. The stock had hit a 52-week high of Rs 61.35 on 12 January 2016. The stock had underperformed the market over the past 30 days till 24 November 2016, sliding 19.49% compared with the 7.10% decline in the Sensex. The scrip, however, outperformed the market in past one quarter, falling 6.48% as against Sensex's 6.92% decline.

The small-cap company has equity capital of Rs 60.17 crore. Face value per share is Rs 5.

Pennar Industries said that the company has invested initially Rs 2.9 lakh and acquired 29,411 shares in Pennar Renewables on 14 October 2015. Pursuant to the investment, Pennar Renewables became subsidiary of the company. Later on as per the understanding and terms of the investment, Pennar Industries has further invested Rs 49.5 crore for 49.80 lakh shares in Pennar Renewables.

Pennar Industries' consolidated net profit rose 14.06% to Rs 10.14 crore on 12.05% growth in total income to Rs 380.69 crore in Q2 September 2016 over Q2 September 2015.

Pennar Industries is one of India's leading industrial organizations offering specialized, engineered steel solutions.

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First Published: Nov 25 2016 | 11:45 AM IST

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