Fulford (India) slumps after promoter cautions on delisting

Fulford (India) hit a lower circuit limit of 5% at Rs 1,584.30 at 11:02 IST on BSE after the company said its promoter may consider other strategic alternatives in relation to its ownership of shares in the company if the delisting offer fails.

The company made the announcement before trading hours today, 17 June 2014.

Meanwhile, the BSE Sensex was down 24.20 points, or 0.10%, to 25,166.28.

On BSE, so far 11,000 shares were traded in the counter, compared with an average volume of 6,935 shares in the past one quarter.

The stock hit a high of Rs 1,690 in early trade, which is also a record high for the counter. The stock hit a low of Rs 1,584.30 so far during the day. The stock hit a 52-week low of Rs 450 on 1 August 2013.

The stock had outperformed the market over the past one month till 16 June 2014, rising 32.19% compared with 4.43% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 141.01% as against Sensex's 15.50% rise.

The small-cap company has an equity capital of Rs 3.90 crore. Face value per share is Rs 10.

On 25 April 2014, Fulford (India) received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of Fulford (India). The indicative price for the delisting was fixed at Rs 1,150 per share.

Dashtag plans to acquire 9.76 lakh shares, representing 25.05% of the paid-up equity share capital of Fulford (India). Promoters owned 74.95% stake in Fulford (India) as on 31 March 2014.

Shares of Fulford (India) have risen 143.15% to Rs 1667.65 on Monday, 16 June 2014, from Rs 685.85 on 25 April 2014.

On Monday, 16 June 2014, Fulford (India) received a letter from Dashtag suggesting that the recent spurt in the share price of Fulford (India), post delisting announcement, is not in the view of Dashtag reflective of the business fundamentals of the company.

Dashtag reiterated that the indicative price currently approved by its board for the proposed delisting of Fulford (India) is Rs 1150 per share.

Dashtag also stated that it follows stringent financial discipline in its acquisitions and does not intend to make acquisitions that do not satisfy its financial expectations. Dashtag reminded that the delisting offer will be successful only if its shareholding in Fulford (India) crosses 90% of the total shares outstanding and the discovered price/exit price for doing so is acceptable to Dashtag.

If the delisting offer not be successful, Dashtag may consider other strategic alternatives in relation to its ownership of shares in Fulford (India). Hence, public shareholders are advised to use discretion and caution when trading in shares of Fulford (India), Dashtag said in a statement.

Fulford (India) reported net loss of Rs 1.17 crore in the quarter ended March 2014 as against net loss of Rs 4.05 crore in the quarter ended March 2013. Net sales declined 1.41% to Rs 45.99 crore in the quarter ended March 2014 over the quarter ended March 2013.

Fulford (India) manufactures antibiotics and anti-allergy products.

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