Igarashi Motors declines as OFS floor price fixed at discount to ruling market price

Igarashi Motors India fell 2.21% to Rs 686 at 10:41 IST on BSE as the floor price for the offer for sale of shares by promoter was fixed at Rs 650 per share, a discount of 7.34% to the stock's closing price on BSE yesterday, 11 July 2016.

Meanwhile, the S&P BSE Sensex was up 66.79 points or 0.24% at 27,693.48.

On BSE, so far 18,000 shares were traded in the counter as against average daily volume of 10,223 shares in the past one quarter. The stock hit a high of Rs 704 and a low of Rs 680 so far during the day. The stock had hit a 52-week low of Rs 372 on 1 March 2016. The stock had hit a record high of Rs 774 on 5 August 2015. The stock had outperformed the market over the past one month till 11 July 2016, surging 8.72% compared with Sensex's 3.72% rise. The scrip had also outperformed the market in past one quarter, advancing 16.82% as against Sensex's 10.41% rise.

The small-cap company has equity capital of Rs 30.61 crore. Face value per share is Rs 10.

Igarashi Motors India's promoter P. Mukund is selling 33.20 lakh equity shares, representing 10.35% of the equity share capital of the company, through Offer for Sale (OFS) via the stock exchanges mechanism. The floor price for the OFS was fixed at Rs 650 per share. The floor price is at a discount of 7.34% to the stock's closing price of Rs 701.50 on BSE yesterday, 11 July 2016.

As at 10:25 IST, the OFS received bids for a total of 44,335 shares from non-retail investors as against 29.88 lakh shares on offer for this category of investors.

Bidding for the shares in the OFS by non-retail investors takes place in a single trading session today, 12 July 2016. However, those non-retail investors who have placed their bids today, 12 July 2016 and have chosen to carry forward their bids to tomorrow, 13 July 2016, will be allowed to revise their bids tomorrow, 13 July 2016. Bidding by retail investors will take place in a single trading session tomorrow, 13 July 2016.

P. Mukund held 32.6% stake in Igarashi Motors India (as per the shareholding pattern as on 31 March 2016).

Igarashi Motors India's net profit rose 8.9% to Rs 18.55 crore on 24.3% growth in net sales to Rs 126.63 crore in Q4 March 2016 over Q4 March 2015.

Igarashi Motors India manufactures automobile parts. The company specializes in the design and manufacture of small, permanent magnet DC motors and gear motors.

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