Gujarat NRE Coke was locked at 20% upper circuit at Rs 3.76 at 11:17 IST on BSE after the company said that its board of directors approved the sale of the company's wind mill business for a consideration of Rs 218.75 crore.
The company made the announcement after market hours yesterday, 5 October 2015.
Meanwhile, the S&P BSE Sensex was up 76.07 points or 0.28% at 26,861.62.
The stock spurted on heavy volumes. On BSE, so far 22.51 lakh shares were traded in the counter as against average daily volume of 2.60 lakh shares in the past one quarter.
The stock hit a low of Rs 3.56 so far during the day. The stock had hit a 52-week high of Rs 9.37 on 14 October 2014. The stock had hit a 52-week low of Rs 2.71 on 10 September 2015.
The stock had outperformed the market over the past one month till 5 October 2015, surging 8.65% compared with the Sensex's 6.28% rise. The scrip had, however, underperformed the market in past one quarter, declining 14.91% as against Sensex's 4.65% fall.
The small-cap company has equity capital of Rs 691.16 crore. Face value per share is Rs 10.
Speaking on the development, Arun Kumar Jagatramka, Chairman and Managing Director of Gujarat NRE Coke said that with the expected upturn in the country's industrial scenario, the company expects to ramp up its capacity utilization in the near future. The proceeds of the sale will help in improving the company's cash flows thereby helping in the faster revival of the company's operations, Kumar said.
Also, Gujarat NRE Coke's board of directors at its meeting held yesterday, 5 October 2015, approved a scheme of arragement/compromise with its unsecured creditors. The scheme has been approved by the Board subject to requisite approvals.
Gujarat NRE Coke reported a net loss of Rs 56.34 crore in Q1 June 2015, lower than net loss of Rs 66.76 crore in Q1 June 2014. Net sales rose 284.2% to Rs 242.03 crore in Q1 June 2015 over Q1 June 2014.
Gujarat NRE Coke, the flagship company of Gujarat NRE group, is one of the largest independent producers of met coke in India.
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