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Tasty Bite Eatables rallies 44% in two days

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Capital Market
Last Updated : Apr 16 2015 | 12:01 PM IST

Tasty Bite Eatables was locked at 20% upper circuit at Rs 924 at 11:05 IST on BSE, with the stock extending yesterday's rally triggered by the company's parent firm entering into a strategic investment with a leading Japanese food company, Kagome.

Meanwhile, the S&P BSE Sensex was down 153.80 points or 0.53% at 28,645.89.

On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 656 shares in the past one quarter.

The stock's current price of Rs 924 is its record high. The stock hit a low of Rs 890 so far during the day. The stock had hit a 52-week low of Rs 223.95 on 13 May 2014.

The stock had outperformed the market over the past one month till 15 April 2015, advancing 23.2% compared with Sensex's 1.04% rise. The scrip had, however, underperformed the market in past one quarter, surging 10% as against Sensex's 2.58% rise.

The small-cap company has equity capital of Rs 2.57 crore. Face value per share is Rs 10.

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Shares of Tasty Bite Eatables have rallied 43.98% in two trading sessions from Rs 641.75 on 13 April 2015, after the company during market hours yesterday, 15 April 2015, said that its parent firm Preferred Brands International Inc. (PBI) has entered into a strategic investment with a leading Japanese food company, Kagome. The stock surged by the maximum permissible level of 20% to settle at Rs 770 yesterday, 15 April 2015. Under the terms of the transaction approved by the board of directors of Preferred Brands International Inc. (PBI) and Kagome will hold a majority stake in PBI while providing an exit to PBI's private equity investors. The founders of PBI will continue to own a significant stake in the company and continue to run the business from its headquarters in Stamford CT, USA. Ashok Vasudevan will remain Chairman of Tasty Bite Eatables (TBEL) and Masahiro 'Sean' Sumitomo Managing Executive Officer of Kagome will join the board of TBEL in India and serve as the Co-Chairman of the present PBI.

As part of the transaction, Kagome along with PBI announced an open offer to the public shareholders of TBEL to acquire 6.61 lakh shares, representing 25.78% of the fully diluted voting equity share capital of TBEL. The open offer price was fixed at Rs 655.57 per share.

Kagome was founded in 1899 as the first grower of tomatoes in Japan. With revenues of nearly $2 billion, it is Japan's leading manufacturer of condiments, tomato products, vegetable juices & other vegetable based products.

TBEL's net profit jumped 126.7% to Rs 2.29 crore on 4.2% growth in net sales to Rs 38.19 crore in Q3 December 2014 over Q3 December 2013.

TBIL makes a range of sauces and formed frozen products to leaders in the food service industry.

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First Published: Apr 16 2015 | 11:01 AM IST

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