Dharani Sugars spurts as board mulls preferential allotment to promoter entity

Dharani Sugars & Chemicals was locked at 10% upper circuit at Rs 20.08 at 11:44 IST on BSE after the company said its board of directors will meet on 26 March 2016 to consider preferential allotment of equity shares to a promoter group entity.

The announcement was made after trading hours yesterday, 14 March 2016.

Meanwhile, the S&P BSE Sensex was down 149.18 points or 0.6% at 24,655.10.

On BSE, so far 9,402 shares were traded in the counter as against average daily volume of 3,581 shares in the past one quarter. The stock hit a low of Rs 18.50 so far during the day. The stock had hit a 52-week high of Rs 27.85 on 19 November 2015. The stock had hit a 52-week low of Rs 9.50 on 25 August 2015. The stock had outperformed the market over the past one month till 14 March 2016, surging 35.26% compared with Sensex's 7.91% rise. The scrip had, however, underperformed the market in past one quarter, sliding 16.81% as against Sensex's 1.38% fall.

The small-cap company has equity capital of Rs 29.39 crore. Face value per share is Rs 10.

Dharani Sugars & Chemicals said that its board of directors will meet on 26 March 2016 to consider allotment of equity shares to a promoter group entity Dharani Developers on a preferential basis. Dharani Developers held 9.44% stake in Dharani Sugars & Chemicals as per the shareholding pattern as on 31 December 2015.

Dharani Sugars & Chemicals reported net loss of Rs 18.65 crore in Q3 December 2015, lower than net loss of Rs 27.90 crore in Q3 December 2014. Net sales rose 13.4% to Rs 76.36 crore in Q3 December 2015 over Q3 December 2014.

Dharani Sugars & Chemicals is the flagship company of PGP group of companies. The company manufactures sugar, organic and inorganic chemicals.

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