Agro Tech Foods slips after buyback offer withdrawal

The announcement was made after market hours on Tuesday, 11 June 2013.

Meanwhile, the BSE Sensex was down 43.94 points or 0.23% at 19,099.06.

On BSE, 541 shares were traded in the counter as against average daily volume of 6,487 shares in the past one quarter.

The stock hit a high of Rs 539 and a low of Rs 528 so far during the day. The stock had hit a 52-week high of Rs 584.80 on 6 June 2013. The stock had hit a 52-week low of Rs 400 on 12 October 2012.

The stock underperformed the market over the past one month till 11 June 2013, declining 3.14% compared with the Sensex's 4.87% slide. The scrip, however, outperformed the market in past one quarter, rising 11.2% as against Sensex's 2.56% slide.

The small-cap company has equity capital of Rs 24.37 crore. Face value per share is Rs 10.

Agro Tech Foods said that its board of directors has decided to withdraw the proposed buyback offer as current share price of the company was higher than the company's buyback offer price of Rs 520 per share. The buyback offer may not be successful if pursued, the company said in a statement.

Agro Tech Foods' board of directors at its meeting held on 24 April 2013, unanimously approved the proposal for buy back through tender offer method of approximately 10 lakh equity shares from the shareholders at Rs 520 per share payable in cash upto an aggregate amount of Rs 52 crore which is less than 25% of the aggregate of total paid capital and free reserves of the company as per the audited accounts of the company for the year ended on 31 March 2012. The company had proposed to buyback through tender offer method on a proportionate basis.

Agro Tech Foods' net profit rose 13.6% to Rs 13.88 crore on 17.2% growth in net sales to Rs 204.74 crore in Q4 March 2013 over Q4 March 2012.

Agro Tech Foods is engaged in the business of marketing food and food ingredients to consumers and institutional customers.

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