Fresenius Kabi Oncology surged 6.46% to Rs 141 at 10:08 IST on BSE, with the stock extending Tuesday's 20% rally triggered by market regulator Sebi allowing the company to delist its shares from the Indian stock market.
Meanwhile, the S&P BSE Sensex was down 98 points or 0.48% at 20,204.13.
On BSE, 2.26 lakh shares were traded in the counter as against average daily volume of 33,920 shares in the past one quarter.
The stock hit a high of Rs 144 and a low of Rs 135.05 so far during the day. The stock had hit a 52-week high of Rs 152.45 on 17 April 2013. The stock had hit a 52-week low of Rs 78.50 on 18 October 2012.
The stock had outperformed the market over the past one month till 23 July 2013, surging 20.52% compared with the Sensex's 8.14% jump. The scrip had, however, underperformed the market in past one quarter, gaining 2.59% as against Sensex's 5.85% rise.
The small-cap company has equity capital of Rs 15.82 crore. Face value per share is Re 1.
Shares of Fresenius Kabi Oncology have rallied 27.71% in two trading sessions from Rs 110.40 on 22 July 2013, after market regulator Securities & Exchange Board of India (Sebi) in its order dated Monday, 22 July 2013, allowed the company to delist its shares from the Indian stock market. The stock galloped by the maximum permissible level of 20% to settle at Rs 132.45 on Tuesday, 23 July 2013.
Sebi in its order dated 22 July 2013, asked Fresenius Kabi Oncology to complete the delisting process within three months-bringing to an end a long-standing dispute. Allowing Fresenius Kabi Oncology to initiate the delisting process, Sebi however, said that the company would have to take into account its pre-OFS (offer for sale) promoter holding to determine the minimum number of shares to be acquired for the delisting. Before the OFS, the promoter holding was 90%, which has now fallen to 81%. The promoter offloaded 9% through OFS in October 2012 reducing its stake to 81% to fulfill the 25% minimum public shareholding norms.
The company's overseas parent -- Fresenius Kabi (Singapore) Pte -- had announced delisting plan in April 2013. The foreign promoter had said at that time that it intends to pay an indicative price of up to Rs 130 per share to acquire the shares offered to it in the delisting offer.
Sebi had earlier refused permission to the company for its delisting plans, saying that it had benefited from a specially designed offer-for-sale (OFS) route for expanding the public float of shares. While the company had earlier sold 9% promoter stake through an OFS, it later proposed to delist its shares from the stock exchanges rather than selling a further 6% to meet the minimum public shareholding requirement.
Fresenius Kabi Oncology reported net loss of Rs 7.76 crore in Q4 March 2013 as against net profit of Rs 1.68 crore in Q4 March 2012. Net sales declined 32.6% to Rs 70.54 crore in Q4 March 2013 over Q4 March 2012.
Fresenius Kabi Oncology develops, manufactures and markets anti-cancer products for critically and chronically ill patients. Besides the unit in West Bengal, the company has another manufacturing unit at Baddi in Himachal Pradesh.
The company is also engaged in research and development of anti-cancer products.
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