Seamec hit 5% upper circuit at Rs 167.45 at 10:05 IST on BSE after the company said its board of directors approved draft scheme of arrangement between promoter, HAL Offshore and the company.
The announcement was made after market hours yesterday, 15 November 2017.Meanwhile, the S&P BSE Sensex was up 189.82 points, or 0.58% at 32,950.26. The S&P BSE Small-Cap index was up 77.51 points, or 0.45% at 17,350.91, underperforming the Sensex.
High volumes were witnessed on the counter. On the BSE, 62,417 shares were traded on the counter so far as against the average daily volumes of 4,536 shares in the past one quarter. The stock was locked at a high of Rs 167.45 in intraday trade. The stock had hit a low of Rs 156 so far during the day. The stock had hit a 52-week high of Rs 194 on 7 August 2017 and a 52-week low of Rs 77.85 on 27 December 2016.
The stock had outperformed the market over the past one month till 15 November 2017, advancing 14.62% compared with the Sensex's 1.01% rise. The scrip had, however, underperformed the market over the past one quarter declining 3.13% as against the Sensex's 4.17% rise. The scrip had, however, outperformed the market over the past one year jumping 98.88% as against the Sensex's 24.54% rise.
The small-cap company has equity capital of Rs 25.42 crore. Face value per share is Rs 10.
Seamec's board of directors has considered and approved, after recommendation of the audit committee of the company, the draft scheme of arrangement between unlisted entity, HAL Offshore and its listed subsidiary, Seamec for demerger of the engineering, procurement and construction (EPC) & vessel division of HAL Offshore into Seamec. The proposed scheme of arrangement is subject to further approval of the stock exchanges, SEBI, NCLT and other competent authorities.
The demerged division posted net profit of Rs 18.92 crore on turnover of Rs 95.98 crore in the June quarter. The scheme is a related party transaction and done on arm's length basis.
HAL Offshore is a end to end solution provider of underwater and EPC services to the Indian oil and gas industry.
The demerger would result in business synergy, consolidation of entire vessel charter business of both the companies into Seamec, pooling off the resources of these companies and would enable Seamec to diversify into lucrative EPC business.
As per the proposed scheme of arrangement, Seamec would credit 10 fully paid shares of face value Rs 10 for every 30 shares of Rs 10 held in HAL Offshore. Also, Seamec would issue 99, 6% non-cumulative compulsorily redeemable preference shares of Rs 10 each for every 30 shares held in HAL Offshore.
Post scheme of arrangement, the shareholding of the promoter, HAL Offshore will rise to 74.53% from the current 69.57%.
Seamec reported net loss of Rs 6.65 crore in Q2 September 2017 compared with net loss of Rs 20.22 crore in Q2 September 2016. Total income rose 33.7% to Rs 37.57 crore in Q2 September 2017 over Q2 September 2016.
Seamec is a leading provider of diving support vessel (DSV) based diving services. The company has experience in the ongoing subsea inspection, repair, maintenance and light construction required for the efficient and productive support of offshore oil production.
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