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Vascon Engineers slumps after cancelling proposed preferential allotment

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Capital Market
Last Updated : Jun 12 2017 | 12:47 PM IST

Vascon Engineers hit a lower circuit limit of 20% at Rs 45.45 at 12:24 IST on BSE after the company said it cancelled the proposed issuance of compulsorily convertible debentures on preferential basis.

The announcement was made on Sunday, 11 June 2017.

Meanwhile, the S&P BSE Sensex was down 153.21 points, or 0.49% to 31,108.85.

On the BSE, 6.35 lakh shares were traded in the counter so far, compared with average daily volumes of 8.04 lakh shares in the past one quarter. The stock had hit a high of Rs 47 in early trade. The stock hit a 52-week high of Rs 58.80 on 15 May 2017. The stock hit a 52-week low of Rs 26.15 on 27 December 2016.

The stock had outperformed the market over the past one month till 9 June 2017, rising 4.32% compared with 3.34% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 55.62% as against Sensex's 8% rise. The scrip had also outperformed the market in past one year, rising 104.68% as against Sensex's 17.37% rise.

The small-cap company has equity capital of Rs 167.66 crore. Face value per share is Rs 10.

On 27 April 2017, Vascon Engineers proposed preferential allotment of fully compulsorily convertible debentures (CCDs) to Manan Finserve and Vinca Rosea Farms and Properties LLP. However, due to certain differences between the company with the proposed investors, both parties decided to terminate the arrangement. Accordingly, the company has cancelled the proposed preferential allotment of CCDs to the proposed investors.

Vascon Engineers reported net profit of Rs 1.90 crore in Q4 March 2017 as against net loss of Rs 1.48 crore in Q4 March 2016. Net sales declined 25.5% to Rs 57.48 crore in Q4 March 2017 over Q4 March 2016.

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Vascon Engineers is an engineering, procurement and construction (EPC) company. It is active In multiple sectors including residential, industrial, IT parks, malls and multiplexes, hospitality and community.

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First Published: Jun 12 2017 | 12:24 PM IST

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