Hinduja Foundries was locked at 20% lower circuit to Rs 44 at 10:00 IST on BSE after the board of directors approved the proposal of amalgamating the company with Ashok Leyland.
The separate announcements in this regard were made by Hinduja Foundries and Ashok Leyland after market hours yesterday, 14 September 2016. Shares of Ashok Leyland dropped 3.08% to Rs 81.95.Meanwhile, the BSE Sensex was up 48.65 points, or 0.17%, to 28,420.88.
High volumes were witnessed on the counter of Hinduja Foundries. On BSE, so far 1.15 lakh shares were traded in the counter of Hinduja Foundries, compared with an average volume of 3,411 shares in the past one quarter. The stock was locked at a low of Rs 44 so far during the day. The stock hit high of Rs 50.15 so far during the day. The stock hit a 52-week high of Rs 65 on 7 July 2016. The stock hit a 52-week low of Rs 27.30 on 12 February 2016. The stock had outperformed the market over the past one month till 14 September 2016, rising 2.9% compared with 0.78% gains in the Sensex. The scrip had, however, underperformed the market in past one quarter, gaining 0.83% as against Sensex's 7.49% gains.
The small-cap company has an equity capital of Rs 207.05 crore. Face value per share is Rs 10.
The transaction is subject to various regulatory approvals and approval of shareholders of both the companies. The board of directors also approved, subject to regulatory approvals the exchange ratio wherin shareholders holding 100 shares in Hinduja Foundries will get 40 shares of Ashok Leyland. One thousand 2008 series global depository receipts (GDRs) of Hinduja Foundries will get 133 shares of Ashok Leyland. One 2006 series GDRs of Hinduja Foundries will get 4,800 shares of Ashok Leyland. The appointed date for the proposed transaction is 1 October 2016.
Commenting on the transaction, Vinod Dasari, CEO and Managing Director of Ashok Leyland said that the amalgamation will result in operational efficiencies and help realize cost synergies.
More From This Section
Hinduja Foundries reported net loss of Rs 36.58 crore in Q1 June 2016 compared with net loss of Rs 98.52 crore in Q1 June 2015. Net sales rose 10.2% to Rs 166.24 crore in Q1 June 2016 over Q1 June 2015.
Hinduja Foundries is India's largest foundry group with the capacity to produce cylinder block and head ranging from 25 kilograms (kgs) to 500 kgs. From castings for automobiles and tractors to industrial engines, construction equipment and power generation equipment, Hinduja Foundries meets the stringent requirement of diverse segments. It even caters to the exceptionally high standards of defence applications.
Ashok Leyland is one of the leading manufacturers of medium and heavy commercial vehicles in India.
Both, Ashok Leyland and Hinduja Foundries are a part of Hinduja Group.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content