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Rajesh Exports gains after board approves acquisition

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Capital Market
Last Updated : Jun 14 2016 | 10:01 AM IST

Rajesh Exports rose 1.75% to Rs 486.60 at 9:41 IST on BSE after the company said that its board approved acquisition in the Middle East.

The announcement was made after market hours yesterday, 13 June 2016.

Meanwhile, the BSE Sensex was down 19.97 points, or 0.08%, to 26,376.80.

On BSE, so far 23,000 shares were traded in the counter, compared with an average volume of 56.90 lakh shares in the past one quarter. The stock hit a high of Rs 495.90 and a low of Rs 484 so far during the day. The stock hit a record high of Rs 745.50 on 18 February 2016. The stock hit a 52-week low of Rs 235.05 on 16 June 2015. The stock had underperformed the market over the past one month till 13 June 2016, falling 16.67% compared with 3.56% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 26.25% as against Sensex's 7.52% rise.

The large-cap company has an equity capital of Rs 29.53 crore. Face value per share is Re 1.

The board of directors of Rajesh Exports in the meeting held yesterday, 13 June 2016, approved to make acquisition(s) in the Middle East. The proposal was approved to strengthen the backward integration of the company and to strengthen the domestic and global presence of the company in gold business.

The board of directors has further authorized Rajesh Mehta, the chairman of the company, to take all the necessary steps to complete the acquisition.

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On a consolidated basis, net profit of Rajesh Exports rose 22.16% to Rs 251.12 crore on 191.81% rise in net sales to Rs 55928.33 crore in Q4 March 2016 over Q4 March 2015.

Rajesh Exports is largest processor of gold in the world. It processes 35% of gold produced in the world. It has a presence across the value chain of gold from mining till its own retail brand. It is also the largest refiner of gold in the world.

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First Published: Jun 14 2016 | 9:39 AM IST

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