Piramal Glass jumped 14.44% to Rs 106.20 at 09:43 IST on BSE, with the stock extending Monday's 20% rally triggered by the company's board approving delisting of equity shares from the stock exchanges.
Meanwhile, the BSE Sensex was up 44.65 points or 0.22% to 20,378.92
On BSE, so far 3.95 lakh shares were traded in the counter as against an average daily volume of 5,534 shares in the past one quarter.
The stock hit a 52-week high of Rs 108.60 in intraday trade today, 11 February 2014. The stock hit a low of Rs 104.10 so far during the day. The stock hit a 52-week low of Rs 67.50 on 3 February 2014.
The stock had outperformed the market over the past one month till 10 February 2014, rising 6.3% compared with the Sensex's 2.04% fall. The scrip had also outperformed the market in past one quarter, gaining 4.8% as against Sensex's 1.61% fall.
The small-cap company has an equity capital of Rs 80.91 crore. Face value per share is Rs 10.
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Shares of Piramal Glass jumped 37.29% in two trading days from Rs 77.35 on 7 February 2014. The gains were triggered by the company's board of directors at its meeting held on Monday, 10 February 2014 approving voluntary delisting of equity shares from the stock exchanges. Total promoter holding stood at 74.16% in Piramal Glass (as per the shareholding pattern as on 31 December 2013). The stock surged by maximum permissible level of 20% to Rs 92.80 on Monday, 10 February 2014.
Piramal Glass had after market hours on Friday, 7 February 2014 said that the company has received a proposal dated 7 February 2014 from Sri Hari Trust acting through its corporate trustee PEL Management Services (proposed acquirer), to acquire the fully paid-up equity shares of Piramal Glass held by public shareholders in accordance and compliance with Sebi (Securities and Exchange Board of India).
As per the delisting proposal, the objective of the proposed acquirer in making the delisting offer is to give flexibility to the promoter group to provide the desired financial support to the company including modifying the existing capital structure, infusing additional capital and adequately supporting the company's strategic growth initiatives, the company said in a statement.
The company needs capital infusion to correct its gearing and liquidity issues, which the promoter is willing to provide. However, with the promoter group shareholding being almost 75%, capital infusion options in the company are limited due to the current state of capital markets. Thus, the delisting proposal would give the company flexibility to deleverage itself and recognize its operations to improve its performance. Additionally, given the trading volume of the company's shares, the promoter group believes that the delisting proposal is in the best interests of the public shareholders as it comes with an opportunity to exit, Piramal Glass added.
The promoters have fixed an indicative offer price of Rs 100 per share for public shareholders, Piramal Glass said in a statement.
Piramal Glass' consolidated net profit jumped 156.8% to Rs 12.12 crore on 15.8% growth in total income to Rs 462.02 crore in Q3 December 2013 over Q3 December 2012. The result was announced during market hours on Monday, 10 February 2014
Piramal Glass is engaged in the manufacturing of flacconage glass for the pharmaceuticals and perfumery businesses. The company's end-to-end flacconage solutions include full bottle design capabilities, in-house mould design, CNC machines for mould manufacturing, high quality glass manufacturing and dedicated ancillaries for decoration and accessories like caps, cartons and brushes.
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