Sterling Biotech jumped 7.99% to Rs 9.60 at 13:37 IST on BSE, extending Thursday's 20% surge triggered by the company's bond holders approving a proposal to restructure existing bonds.
The announcement was made after market hours on Wednesday, 20 November 2013. The stock hit an upper circuit limit of 20% at Rs 8.89 on Thursday, 21 November 2013. It has risen 29.55% in two sessions from Rs 7.41 on 20 November 2013.
Meanwhile, the BSE Sensex was up 101.32 points, or 0.50%, to 20,330.37.
On BSE, 11.35 lakh shares were traded in the counter compared with average volume of 1.51 lakh shares in the past one quarter.
The stock hit a high of Rs 9.74 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 9.04 so far during the day. The stock hit a 52-week low of Rs 3.43 on 20 March 2013.
The stock had outperformed the market over the past one month till 21 November 2013, rising 55.96% compared with the Sensex's 3.18% fall. The scrip had also outperformed the market in past one quarter, soaring 97.12% as against Sensex's 12.97% rise.
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The small-cap company has an equity capital of Rs 26.79 crore. Face value per share is Re 1.
Sterling Biotech after trading hours on Wednesday, 20 November 2013, said that at the meeting of the holders of the existing bonds held on Wednesday, 20 November 2013, the bond holders approved the extraordinary resolution to exchange and substitute the existing bonds with Zero Coupon Convertible Bonds due 2018.
The bond holders approved the conversion price of the bonds due 2018 at Rs 60 per share, subject to Reserve Bank of India, Foreign Investment Promotion Board and such other regulatory approvals, if any.
The bond holders also approved to suspend all litigations in India and UK till January 2014 and they also agreed to withdraw the litigations in India and UK on completion of the exchange and substitution of the existing bonds with and for the Zero Coupon Convertible Bonds due 2018, Sterling Biotech said.
Sterling Biotech had on 30 May 2013 said that in respect of the $250,000,000 Zero Coupon Convertible Bonds due 2012 convertible into ordinary shares or global depository receipts representing ordinary shares of the company of which $134,500,000 in principal amount remain outstanding, to enable a consensual restructuring of the bonds to be agreed and implemented, a meeting of the bond holders was convened by the Trustee on 30 May 2013 at Hong Kong wherein an extraordinary resolution was passed suspending all litigations in India and UK.
Sterling Biotech reported a net loss of Rs 99.38 crore in Q3 September 2013, higher than net loss of Rs 76.67 crore in Q3 September 2012. Net sales declined 18.5% to Rs 161.35 crore in Q3 September 2013 over Q3 September 2012.
Sterling Biotech's core business is the manufacture of gelatin for pharmaceutical and edible uses.
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