Piramal Enterprises rose 6.13% to Rs 569 at 11:23 IST on BSE after the firm said it has agreed to divest its entire equity stake in Vodafone India to Prime Metals, an indirect subsidiary of Vodafone Group Plc, for total consideration of Rs 8900 crore
The announcement was made during trading hours today, 10 April 2014.
Meanwhile, the S&P BSE Sensex was up 16.99 points or 0.07% at 22,719.33.
On BSE, so far 99,000 shares were traded in the counter as against average daily volume of 8,981 shares in the past one quarter.
The stock hit a high of Rs 577.10 and a low of Rs 539.10 so far during the day. The stock had hit a record high of Rs 648.30 on 2 September 2013. The stock had hit a 52-week low of Rs 476 on 25 June 2013.
The stock had underperformed the market over the past one month till 9 April 2014, advancing 2.08% compared with the Sensex's 3.57% rise. The scrip had also underperformed the market in past one quarter, declining 2.53% as against Sensex's 9.6% rise.
The mid-cap company has equity capital of Rs 34.51 crore. Face value per share is Rs 2.
Piramal Enterprises said it has agreed to divest its entire equity stake, comprising 4.54 crore shares (approximately 11%), in Vodafone India to Prime Metals, an indirect subsidiary of Vodafone Group Plc, for a total consideration of Rs 8900 crore, valuing the shares of Vodafone India at Rs 1,960 per share.
Piramal had acquired these shares at an average price of Rs 1,290 per share for a total consideration of Rs 5864 crore in two tranches during FY 2012.
Ajay Piramal, Chairman, Piramal Group said, "The equity purchase in Vodafone was consistent with our objective of making investments that offer opportunity to generate attractive long term return on equity. I am glad to say that we have delivered against our targeted returns with this investment".
On a consolidated basis, Piramal Enterprises reported a net loss of Rs 11.14 crore in Q3 December 2013 compared with net profit of Rs 61.07 crore in Q3 December 2012. Net sales rose 29.3% to Rs 1269.34 crore in Q3 December 2013 over Q3 December 2012.
Piramal Enterprises is one of the India's largest diversified companies, with a presence in pharmaceutical, financial services and information management sectors.
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