Somany Ceramics surges on raising short term debt

The stock surged 17% to Rs 559 on the BSE in intra-day trade on back of heavy volumes.

Somany Ceramics has surged 17% to Rs 559 on the BSE in intra-day trade on back of heavy volumes after the company said it issued commercial paper worth Rs 15 crore, to reduce high interest bearing cash credit limits and in turn reducing cost of borrowing.

“The company has issued Commercial paper of Rs 15 crore value dated January 10, 2017 having maturity on March 24, 2017,” Somany Ceramics said in a statement.

The aforesaid issuance of commercial paper is to reduce high interest bearing cash credit limits and in turn reducing cost of borrowing, it added.

The stock of ceramic tiles manufacturer had underperformed the market after the government demonetization scheme. Since November 8, the stock plunged 27% as compared to 2.5% decline in the S&P BSE Sensex till Tuesday. It hit a 52-week high of Rs 714 on October 26, 2016 during intra-day trade.

Somany Ceramics posted 93.5% year on year jump in its net profit at Rs 40.91 crore for the first six months (April to September) of the current financial year 2016-17 (FY17), despite single digit volume growth.

At 12:27 pm; the stock was up 13% at Rs 540 on the BSE as compared to 0.56% rise in the S&P BSE Sensex. The trading volumes on the counter jumped by more than five-fold with a combined 148,899 shares changed hands on the BSE and NSE.