HEG nears 52-week low; stock tanks 18%; down 31% in three sessions

The stock tanked 18% to Rs 2,244, falling 31% in past three trading days, quoting close to its 52-week low price of Rs 2,214 touched February 2, 2018 in intra-day trade.

Shares of graphite electrode manufacturer HEG  continue to trade under pressure, falling 18 per cent to Rs 2,244 on the BSE on  the back of heavy volumes. The stock is currently trading close to its 52-week low of Rs 2,214 touched February 2, 2018 in intra-day trade.

In the past three days, HEG tanked 31 per cent from a level of Rs 3,275, as compared to 1 per cent decline in the S&P BSE Sensex. The stock has corrected 55 per cent from its all-time of Rs 4,950 hit on October 16, 2018 in intra-day deals.

On Sunday, January 27, 2019 HEG informed the stock exchanges regarding the demise of Raju Rustogi, their Chief Financial Officer & Chief Operating Officer (CFO & COO) on January 26 following a heart ailment. The company said it will fill the resultant vacancy within a stipulated time permissible under the law.

Buyback proposal

Meanwhile, in separate regulatory filing, HEG said that the results of postal ballot for resolution for the approval for buyback of equity shares of the company and approval for investments/loans/ guarantees/securities will be declared on or before 17:00 hours IST on Tuesday, January 29, 2019.

The board of directors of HEG at their meeting held on November 26, 2018 had approved a buyback of 1.36 million shares, being 3.41 per cent of the total equity share capital of the company at a rate of Rs 5,500 per share. HEG was currently quoting 59 per cent below its proposed share buyback price.

At 01:49 pm; HEG was trading 17 per cent lower at Rs 2,285 on the BSE, against 1 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped nearly three-fold with a combined 1.31 million equity shares changed hands on the NSE and BSE so far.