Sharp India was locked at 20% upper circuit at Rs 48.35 at 12:25 IST on BSE on reports Taiwan's Foxconn has offered about $5.3 billion to take over Sharp Corporation, the company's Japanese parent.
Meanwhile, the S&P BSE Sensex was down 115.44 points or 0.48% at 23,946.60.
The stock surged on high volumes. On BSE, so far 3.06 lakh shares were traded in the counter as against average daily volume of 57,384 shares in the past one quarter. The stock hit a low of Rs 41 so far during the day. The stock had hit a 52-week high of Rs 89.50 on 28 January 2015. The stock had hit a 52-week low of Rs 34.70 on 29 September 2015. The stock had underperformed the market over the past one month till 20 January 2016, sliding 29.36% compared with Sensex's 5.71% fall. The scrip had, however, outperformed the market in past one quarter, declining 9.54% as against Sensex's 11.88% fall.
The small-cap company has equity capital of Rs 25.94 crore. Face value per share is Rs 10.
According to reports, Foxconn has offered about 625 billion yen ($5.3 billion) to buy Sharp Corporation and has no plans to replace top management. Further, reports suggested that Sharp Corporation is set to review a competing offer from Innovation Network Corp. of Japan, a government-backed investment fund. Media reports suggested that Sharp Corporation is facing financial troubles and has been bailed out repeatedly by the banks.
Sharp Corporation, Japan held 75% stake in Sharp India as per the shareholding pattern as on 30 September 2015.
Sharp India reported net loss of Rs 9.99 crore in Q2 September 2015, higher than net loss of Rs 2.18 crore in Q2 September 2014. Net sales declined 96% to Rs 1.57 crore in Q2 September 2015 over Q2 September 2014.
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Sharp India is engaged in the business of consumer electronics, including various types of color televisions, home appliances and other consumer durables, LED TVs and air conditioners.
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