Emami Paper gains after allotment of preference shares to promoters

Emami Paper Mills rose 1.32% to Rs 26.95 at 14:14 IST on BSE after the company said it has allotted cumulative redeemable non-convertible preference shares on preferential basis to the promoters.

The company made the announcement during trading hours today, 31 March 2014.

Meanwhile, the BSE Sensex was down 34.80 points, or 0.16%, to 22,305.17.

On BSE, so far 2,805 shares were traded in the counter, compared with an average volume of 1.53 lakh shares in the past one quarter.

The stock hit a high of Rs 29.25 and a low of Rs 25.75 so far during the day. The stock hit a 52-week high of Rs 32.45 on 24 June 2013. The stock hit a 52-week low of Rs 20.65 on 6 February 2014.

The stock had underperformed the market over the past one month till 28 March 2014, rising 1.33% compared with the Sensex's 5.78% rise. The scrip had also underperformed the market in past one quarter, falling 3.27% as against Sensex's 5.41% rise.

The small-cap company has an equity capital of Rs 12.10 crore. Face value per share is Rs 2.

Emami Paper Mills said that the preference share committee, at the meeting held on 28 March 2014, considered applications for issue of 8% cumulative redeemable non-convertible preference shares of Rs 100 each at a premium of Rs 300 to the promoters on preferential basis.

Consequently, the company allotted 2.70 lakh preference shares to six entities belonging to the promoter group. The company allotted 67,000 preference shares to Suntrack Commerce, 54,000 preference shares to Bhanu Vyapar, 27,000 preference shares to Emami Enclave Makers, 27,000 preference shares to Emami High Rise, 27,000 preference shares to Suraj Viniyog and 68,000 preference shares to Diwakar Viniyog.

Net profit of Emami Paper Mills surged 166.93% to Rs 6.70 crore on 12.32% rise in net sales to Rs 146.39 crore in Q3 December 2013 over Q3 December 2012.

Emami Paper, a part of Emami Group, specialises in the manufacture of newsprint and writing and printing paper. The company enjoys the position of being the largest manufacturer of newsprint in India, and the only manufacturer in eastern India.

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