McNally Bharat Engineering Company jumped 5.65% to Rs 56.10 at 14:23 IST on BSE after the company said its Singapore-based subsidiary has sold its entire stake of 41.66% in Hayward Tyler Group Plc UK for 12.3 million pounds.
The company made the announcement during trading hours today, 29 January 2014.
Meanwhile, the BSE Sensex was up 61.40 points, or 0.30%, to 20,744.91.
On BSE, so far 1.45 shares were traded in the counter, compared with an average volume of 25,555 shares in the past one quarter.
The stock hit a high of Rs 58 and a low of Rs 52.80 so far during the day. The stock hit a 52-week high of Rs 96.40 on 28 January 2013. The stock hit a 52-week low of Rs 37 on 7 August 2013.
The stock had underperformed the market over the past one month till 28 January 2014, falling 8.37% compared with the Sensex's 2.41% fall. The scrip had underperformed the market in past one quarter, sliding 12.45% as against Sensex's 0.55% rise.
The small-cap company has an equity capital of Rs 31.09 crore. Face value per share is Rs 10.
McNally Bharat Engineering Company announced that its 100% subsidiary in Singapore, MBE Mineral Technologies, has sold its entire shareholding of 41.66% in Hayward Tyler Group Plc UK, in a bidding process at AIM counter of London Stock Exchange at a total value of 12.3 million British pounds.
Commenting on this transaction, the company's Executive Chairman, Mr. Deepak Khaitan, said, "The stated sale of investment in Hayward Tyler has yielded a tax free profit in its Singapore subsidiary of $2.5 million (approximately), which shall be reflected in the consolidated accounts of MBE for 2013-14. The inflow from the transaction shall reduce the overall borrowing in the consolidated accounts of MBE by approximately Rs 140 crore and shall also reduce the contingent liability for Corporate Guarantee given for the loans being paid back to the extent of Rs 130 crore (approximately). MBE shall maintain its relationship with Hayward Tyler Group through its German manufacturing subsidy, MBE, Cologne Engineering GmbH, as the supply partner of Hayward Tyler's Luton plant. MBE Board records its appreciation to Hayward Tyler Management for the turnaround of the company and are happy to be a part of it."
Post completion of this transaction, the company said it shall put sharper focus on its Indian business, which is expected to record improved performance in 2014-15, with an expected opening order book of over Rs 6500 crore and expected turnover of around Rs 2750 crore in 20014-15. MBE's Coal & Mineral Technology Group based in Germany and South Africa, are expected to record improved performance in 2014-15 with an expected opening orderbook of over 40 million euros, McNally Bharat Engineering Company said in a statement.
McNally Bharat Engineering Company's net profit fell 80.9% to Rs 1.63 crore on 7.5% decline in net sales to Rs 474.56 crore in Q2 September 2013 over Q2 September 2012.
McNally Bharat Engineering Company (MBE) is one of the leading Engineering Companies in India engaged in providing turnkey solutions in the areas of power, steel, aluminium, material handling, mineral beneficiation, pyro-processing, pneumatic handling of powdered materials including fly ash handling and high concentrate disposal, coal washing, port cranes, cement, oil & gas, civic and industrial water supply etc.
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