Suryalata Spinning Mills plunges on profit booking

The stock plunged 20% after its board approved the issue of equity shares at Rs 130 per share to the promoters on preferential basis.

Shares of Suryalata Spinning Mills has plunged 20% to Rs 146 on the Bombay Stock Exchange (BSE) on profit bookings after textiles firm said that its board approved issue of equity shares at a price of Rs 130 per share to the promoters on preferential basis.

The stock had rallied almost 50% to Rs 186 from Rs 125 on March 3, 2015 after the company announced that its board will meet on March 14, to consider and approve the preferential offer to promoters of the company.

“The board approved the proposal for offer/issue invitation for subscription of 600,000 equity shares of Rs 10 each at a price of Rs 130 per share on preferential basis to the promoters of the company subject to obtaining the in-principle approval from the BSE,” Suryalata Spinning Mills said in a statement.

Meanwhile, the board also has taken note of incorporation of YP Soalr Private Limited as a wholly owned subsidiary of the company for setting-up solar power plant to generate power for captive consumption of the company.

Till 1328 hours, around 70,000 shares already changed hands and there were pending sell orders for 4,247 shares on the BSE.