CEAT slips after listing of fresh shares

CEAT fell 4.72% to Rs 855.80 at 13:40 IST on BSE as shares allotted by the company to institutional investors under qualified institutional placement are admitted for trading on the bourses today, 3 December 2014.

Meanwhile, the BSE Sensex was up 7.04 points, or 0.02%, to 28,451.05.

On BSE, so far 1.83 lakh shares were traded in the counter, compared with an average volume of 2.14 lakh shares in the past one quarter.

The stock hit a high of Rs 906.85 and a low of Rs 838.20 so far during the day. The stock hit a record high of Rs 1,009 on 12 November 2014. The stock hit a 52-week low of Rs 266 on 24 February 2014.

The stock had outperformed the market over the past one month till 2 December 2014, rising 3.66% compared with 2.07% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 45.93% as against Sensex's 5.27% rise.

The mid-cap company has an equity capital of Rs 40.45 crore. Face value per share is Rs 10.

A total of 44.94 lakh shares are admitted for trading. CEAT had priced the issue of shares to institutional investors at Rs 890 per share.

The Reserve Bank of India (RBI) on 24 November 2014 notified that foreign institutional investors/registered foreign portfolio investors can invest up to 45% of the paid-up capital of CEAT. RBI 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).

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.

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