Jyoti Structures extends rally on takeover buzz

Jyoti Structures rose 17.16% to Rs 16.11 at 15:08 IST on BSE, extending yesterday's 20% rise triggered by media reports that Amin group is likely to acquire the company.

Meanwhile, the BSE Sensex was up 142.33 points, or 0.52%, to 27,769.02.

On BSE, so far 25.59 lakh shares were traded in the counter, compared with an average volume of 1.63 lakh shares in the past one quarter. The stock hit a high of Rs 16.31 and a low of Rs 14.10 so far during the day. The stock hit a 52-week high of Rs 28.80 on 24 July 2015. The stock hit a 52-week low of Rs 8.30 on 24 May 2016. The stock had outperformed the market over the past one month till 11 July 2016, rising 55.02% compared with 3.72% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 25.34% as against Sensex's 10.41% rise.

The small-cap company has an equity capital of Rs 21.91 crore. Face value per share is Rs 2.

Shares of Jyoti Structures surged 20% to Rs 13.75 yesterday, 11 July 2016, after media reports suggested that Amin group, which has business interests ranging from medical and health to power generation and transmission, will invest Rs 500 crore as equity for a majority stake in Jyoti Structures. This will be the first stake sale by the contractor of transmission projects since lenders took its control after a strategic debt restructuring (SDR). Post the transaction, promoter stake in the company is expected to halve from the current 23.5%, reports added.

In August 2015, consortium of 21 banks led by State Bank of India had taken operational control of the company by invoking SDR. Jyoti Structures has debt of over Rs 3800 crore, including short term debt of Rs 3043 crore, reports added.

Jyoti Structures clarified during market hours yesterday, 11 July 2016, that SDR lenders have invited final offer from the investor for their consideration.

Jyoti Structures reported net loss of Rs 52.31 crore in Q4 March 2016 as against net loss of Rs 90.95 crore in Q4 March 2015. Net sales declined 15.88% to Rs 740.02 crore in Q4 March 2016 over Q4 March 2015.

Jyoti Structures is in turnkey/EPC projects in the field of power transmission. The company's main business focus areas are transmission lines, substations and distribution projects. The company undertakes turnkey projects on a global scale, offering a complete range of services in design, testing, manufacturing, sourcing, supply and construction with its in-house expertise.

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