Styrolution ABS hits 2-year low, stock plunges 17% two days
The company said bids received in OFS at or above the clearing price of Rs 426 have been considered for allocation.
Styrolution ABS (India) has tanked 8.5% to Rs 435, extending its previous day’s 8.8% fall the company said bids received in offer-for-sale (OFS) at or above the clearing price of Rs 426 have been considered for allocation.
The stock opened at Rs 444 and hit a low of Rs 432, its lowest value since April 2011 on BSE. A combined around 140,000 shares changed hands on the counter till early noon deals against an average less than 5,000 shares that were traded daily in past two weeks on BSE and NSE.
The promoter of Styrolution ABS, Styrolution Jersey (the parent company) proposed to sell 2.17 million equity shares representing 12.3% of the total paid up equity share capital of the company through OFS on Tuesday.
The issue was oversubscribed by 2.35 times received bids for 5.1 million shares at an indicative price of Rs 422 per share. The promoter has fixed floor price at Rs 400 per share.
Meanwhile, analyst at Angel Broking recommend investors to subscribe for Styrolution OFS as, the offer price is placed at a very attractive valuation of 5.7x its CY2014E earnings and at 23% discount to the closing price of 20th May, 2013.
The stock opened at Rs 444 and hit a low of Rs 432, its lowest value since April 2011 on BSE. A combined around 140,000 shares changed hands on the counter till early noon deals against an average less than 5,000 shares that were traded daily in past two weeks on BSE and NSE.
The promoter of Styrolution ABS, Styrolution Jersey (the parent company) proposed to sell 2.17 million equity shares representing 12.3% of the total paid up equity share capital of the company through OFS on Tuesday.
The issue was oversubscribed by 2.35 times received bids for 5.1 million shares at an indicative price of Rs 422 per share. The promoter has fixed floor price at Rs 400 per share.
Meanwhile, analyst at Angel Broking recommend investors to subscribe for Styrolution OFS as, the offer price is placed at a very attractive valuation of 5.7x its CY2014E earnings and at 23% discount to the closing price of 20th May, 2013.