Ester Industries gains after preferential allotment of convertible warrants

Ester Industries rose 3.17% to Rs 13 at 13:55 IST on BSE after the company said it has allotted 2.07 crore warrants each convertible into one equity share at a conversion price of Rs 10.10 per share to a non-promoter entity on preferential basis.

The announcement was made during trading hours today, 11 April 2014.

Meanwhile, the S&P BSE Sensex was down 134.07 points or 0.59% at 22,581.26.

On BSE, so far 5,590 shares were traded in the counter as against average daily volume of 6,194 shares in the past one quarter.

The stock hit a high of Rs 13 and a low of Rs 12.50 so far during the day. The stock had hit a 52-week high of Rs 16.75 on 5 November 2013. The stock had hit a 52-week low of Rs 6.56 on 2 August 2013.

The stock had outperformed the market over the past one month till 10 April 2014, surging 18.31% compared with the Sensex's 3.56% rise. The scrip had, however, underperformed the market in past one quarter, declining 6.67% as against Sensex's 9.43% rise.

The small-cap company has equity capital of Rs 31.45 crore. Face value per share is Rs 5.

Ester Industries said that in the meeting of its board of directors held today, 11 April 2014, the company has allotted 2.07 crore warrants of Rs 10.10 each convertible into 2.07 crore equity shares of Rs 5 each fully paid up at a price of Rs 10.10 each including a premium of Rs 5.10 each to Vettel International (Non-promoter entity) on preferential basis. The necessary approvals for this allotment have already been obtained by the company, Ester Industries said.

Ester Industries' net profit surged 226.9% to Rs 0.85 crore on 1% decline in net sales to Rs 229.10 crore in Q3 December 2013 over Q3 December 2012.

Ester Industries is one of the leading producers of polyester films and engineering plastic compounds.

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