CEAT gains after RBI allows hike in foreign holding limit

CEAT rose 1.2% to Rs 931.20 at 9:48 IST on BSE after the Reserve Bank of India on Monday, 24 November 2014 notified that foreign institutional investors/registered foreign portfolio investors can invest up to 45% of the paid-up capital of the company

Meanwhile, the S&P BSE Sensex was down 5.19 points or 0.02% at 28,494.35.

On BSE, so far 61,000 shares were traded in the counter as against average daily volume of 2.15 lakh shares in the past one quarter.

The stock hit a high of Rs 945 and a low of Rs 929 so far during the day. The stock had hit a record high of Rs 1,009 on 12 November 2014. The stock had hit a 52-week low of Rs 253 on 25 November 2013.

The stock had underperformed the market over the past one month till 24 November 2014, advancing 4.4% compared with Sensex's 6.14% rise. The scrip had, however, outperformed the market in past one quarter, surging 56.2% as against Sensex's 7.87% rise.

The mid-cap company has equity capital of Rs 35.96 crore. Face value per share is Rs 10.

The Reserve Bank of India stated that CEAT has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges, RBI said.

Foreign institutional investors (FIIs) held 15.65% in CEAT (as per the shareholding pattern as on 30 September 2014).

Meanwhile, CEAT after market hours yesterday, 24 November 2014 said that the qualified institutional placement (QIP) Committee of the company on 24 November 2014, inter alia, approved the floor price of Rs 930.53 per share for the QIP which opened yesterday, 24 November 2014.

On consolidated basis, CEAT's net profit rose 7.6% to Rs 82.35 crore on 8.1% growth in net sales to Rs 1425.76 crore in Q2 September 2014 over Q2 September 2013.

CEAT, the flagship company of RPG Enterprises, is one of India's leading tyre manufacturers and has strong presence in global markets.

Powered by Capital Market - Live News