Aarti Industries surged 8.47% to Rs 345 at 15:20 IST on BSE on approval of scheme of amalgamation by the transferor companies.
The announcement was made after market hours yesterday, 9 March 2015.
Meanwhile, the S&P BSE Sensex was down 132.54 points or 0.46% at 28,712.24
On BSE, so far 2.03 lakh shares were traded in the counter as against average daily volume of 33,718 shares in the past one quarter.
The stock hit a record high of Rs 350 in intraday trade today, 10 March 2015. The stock hit a low of Rs 324 so far during the day. The stock had hit a 52-week low of Rs 106.20 on 10 March 2014.
The stock had outperformed the market over the past one month till 9 March 2015, rising 11.4% compared with 2.19% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 8.7% as against Sensex's 3.77% rise.
The small-cap company has equity capital of Rs 44.30 crore. Face value per share is Rs 5.
Aarti Industries said that the Scheme of Amalgamation of Gogri & Sons Investments (GSIPL) and Alchemie Leasing And Financing (ALFPL) and Anushakti Holdings (AHL) and Anushakti Chemical And Drugs (ACDL) and Aarti Industries (Transferee Company or AIL), and their respective shareholders (Scheme) was approved by the board of directors on 30 May, 2014.
Shareholders of AHL & ACDL have approved the said Scheme unanimously by requisite majority at the Court Convened Meetings held on 9 March 2015. All the shareholders GSIPL & ALFPL had given their consents/ approval for the Scheme earlier.
Necessary Petitions are being filed for confirmation of the said Scheme of Amalgamation in the High Courts of Gujarat at Ahmedabad and of Bombay, Aarti Industries said. The said Scheme is expected to be operational after obtaining requisite High Court orders and completion of process related thereto within next 4-5 months, the company said.
Under the said Scheme, GSIPL, ALFPL, AHL and ACDL (Transferor Companies) would be amalgamated with AIL, with effect from the Appointed Date which would be same as the Effective Date i.e. the date on which the Scheme would become operational. Upon the Scheme becoming effective, the paid up share capital of the company, based on shareholding pattern as on 6 March 2015, is expected to be reduced by about 5.95% resulting in 8.33 crore equity shares of Rs 5 each fully paid up. This would result in increased shareholder value in the long term, Aarti Industries said.
The merger is aimed at simplification and rationalisation of the promoters' shareholding and would also result in increase in public float of shares. Further, merger will also result in elimination of associate companies and would make the shareholding structure more transparent and investor friendly, the company said.
Aarti Industries' net profit rose 16% to Rs 42.89 crore on 6.5% growth in net sales to Rs 681.33 crore in Q3 December 2014 over Q3 December 2013.
Aarti Industries is one of the leading suppliers to global manufacturers of dyes, pigments, agrochemicals, pharmaceuticals & rubber chemicals.
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