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Gati gains after settlement with FCCB holders

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rose 2.93% to Rs 138.70 at 15:11 on after the company said it has resolved to settle dispute with foreign currency convertible bonds holders.

The announcement was made during trading hours today, 16 May 2017.

Meanwhile, the S&P Sensex was up 253.74 points, or 0.84% to 30,575.86.

On the BSE, 4.46 lakh shares were traded in the counter so far, compared with average daily volumes of 2.22 lakh shares in the past one quarter. The stock had hit a high of Rs 143.90 and a low of Rs 135.20 so far during the day. The stock hit a 52-week high of Rs 189.45 on 2 August 2016. The stock hit a 52-week low of Rs 107.10 on 9 November 2016.

The stock had underperformed the market over the past one month till 15 May 2017, falling 2.11% compared with 2.92% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 11.04% as against Sensex's 7% rise.

The small-cap company has equity capital of Rs 17.64 crore. Face value per share is Rs 2.

The trustee of the bond holders holding 22,182 zero coupon unsecured foreign currency convertible bonds (FCCBs) of $1000 each, issued under offer circular dated 12 December 2011, had filed a suit against for conversion of FCCBs, which is pending at commercial court.

and the FCCB holder(s) have resolved to settle the dispute by entering into a settlement agreement dated 16 May 2017 where 7,528 FCCBs will be redeemed; 7,373 FCCBs will be converted into the fully paid equity shares of Gati; and balance 7,281 FCCBs will be either redeemed or converted into fully paid equity shares of Gati at the discretion of the FCCB holder(s). It is proposed to file a consent memo in the court accordingly to obtain a consent order.

On a consolidated basis, net profit of Gati declined 40.22% to Rs 9.29 crore on 3.35% decline in net sales to Rs 410.28 crore in Q4 March 2017 over Q4 March 2016.

Gati provides express distribution and supply chain solutions, with a strong presence in Asia Pacific region and SAARC countries, along with an extensive network across India.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 16 2017. 15:13 IST