Avanti Feeds extends rally on stock split, bonus issue plan

The stock rallied 8% to Rs 1,980, extending its over 30% surge in past three trading sessions, after the company announced stock split from Rs 2 to Re 1 and issue of bonus shares in the ratio of 1:2.

Shares of Avanti Feeds have rallied 8% to Rs 1,980 per share, extending their over 30% surge in past three trading sessions on the BSE, after the company announced  that the meeting of the committee to fix the record date for sub-division of equity shares and issue of bonus equity shares in the ratio of 1:2, (i.e. after sub-division of shares), will be held on 15.06.2018.

The board of directors of the company at its meeting held on May 26, 2018, had recommended a dividend of Rs 6 per equity share of Rs 1 each fully paid, for the financial year 2017-18, subject to approval of sub-division of equity shares from Rs 2 each to Re 1 each and issue of bonus shares in the ratio of 1:2 at the Extraordinary General Meeting (EGM) of the Company to be held on June 14, 2018.

“An Extra-Ordinary General Meeting to consider and approve sub-division of equity shares from face value of Rs 2 each to Re 1 each and issue of bonus equity shares of Re 1 each in the ratio of 1 :2, i.e. One equity share of Re 1 each for every Two equity shares of Re 1 each (i.e. after sub-division of shares) will be held on 14.06.2018 at 11.30 AM at Hotel Daspalla, Visakhapatnam, Andhra Pradesh,” Avanti Feeds said in a BSE filing.

The meeting of the committee to fix the record date for sub-division of equity shares and issue of bonus equity shares in the ratio of 1:2, (i.e. after sub-division of shares), will be held on 15.06.2018 at 11.30 AM, it added.

Shares of shrimp exporters have risen 46% in past four trading sessions from Rs 1,354 on June 5, 2018 as compared to 2% rise in the S&P BSE Sensex.

Between May 25 and June 5, in seven trading sessions, the stock slipped 31% from Rs 1,951 after Avanti Feeds reported 3% year on year decline in its consolidated net profit at Rs 860 million in March quarter. It hit a 52-week low of Rs 1,232 on June 5, in intra-day trade.

“In the current year (2018) till now, the shrimp export prices have been declining significantly and the farm gate prices of raw shrimps have also dipped, dampening the expectations of a growth rate of above 15% in production, in the current year. However, since the prices are expected to go up in near future, the growth may be expected at around 5 - 10%, in the current year,” Avanti Feeds said while announcing Q4FY18 results.

Keeping the increasing growth trend, India exported about 5.40 lakh MT's of shrimp in 2017-18. However, in 2018-19, due to prevailing un-favourable conditions, it is anticipated that the exports may go up by about 5 - 10%, it added.

Despite of an over 40% run-up in past four trading sessions, the stock corrected 34% from its 52-week high of Rs 3,000 recorded on November 13, 2017 on the BSE in intra-day trade.

At 10:13 am; Avanti Feeds was trading 7% higher at Rs 1,947, as compared to 0.53% rise in the S&P BSE Sensex. A combined 631,088 equity shares changed hands on the counter on the BSE and NSE so far.