Electrosteel Steels rose 8.70% to Rs 3.50 at 10:31 IST on BSE on media reports that the Piramal Enterprises and the Renaissance Group are considering to jointly purchase a 51% stake in the company.
Meanwhile, the BSE Sensex was up 88.39 points, or 0.34%, to 26,301.83.
On the BSE, so far 6.80 lakh shares were traded in the counter, compared with average daily volumes of 8.34 lakh shares in the past one quarter. The stock had hit a high of Rs 3.59 and a low of Rs 3.38 so far during the day.
The stock hit a 52-week high of Rs 4.50 on 27 January 2016. The stock hit a 52-week low of Rs 2.42 on 29 June 2016. The stock had outperformed the market over the past 30 days till 27 December 2016, rising 5.23% compared with the 0.52% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 10.27% as against Sensex's 7.35% decline.
The small-cap company has equity capital of Rs 2409.24 crore. Face value per share is Rs 10.
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According to a media report, the Ajay Piramal-led Piramal Enterprises and the Renaissance Group, an part of the Dalmia Group, are in the reckoning to jointly purchase a 51% stake in Electrosteel Steels.
While Piramal Enterprises is expected to invest Rs 1400 crore in Electosteel Steels through its private equity arm Piramal Capital, the Renaissance Group will manage the operations. The funds will be used to complete the expansion of the Bokaro plant and increase capacity by one million tonne to 2.5 mtpa, the report suggested.
Electrosteel Steels reported net loss of Rs 485.89 crore in Q2 September 2016 as against net loss of Rs 203.57 crore in Q2 September 2015. Net sales declined 2.6% to Rs 556.93 crore in Q2 September 2016 over Q2 September 2015.
Electrosteel Steels makes products like pig iron, billets, tmt bars, wire rods and ductile iron pipes. Electrosteel Steels is promoted by Electrosteel Castings which owns 45.23% of the equity.
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