Mangalore Chemicals jumps after shareholders reject transaction with Zuari Agro

Mangalore Chemicals and Fertilisers rose 7.87% to Rs 48 at 13:06 IST on BSE after the company said its shareholders rejected the proposed transaction with Zuari Agro Chemicals.

Meanwhile, the BSE Sensex was up 73.87 points, or 0.26%, to 28,297.57.

On BSE, so far 1.26 lakh shares were traded in the counter, compared with average daily volume of 9,905 shares in the past one quarter. The stock hit a high of Rs 51.90 and a low of Rs 44 so far during the day. The stock hit a 52-week high of Rs 58.50 on 20 June 2016. The stock hit a 52-week low of Rs 35.30 on 15 February 2016. The stock had underperformed the market over the past 30 days till 27 September 2016, falling 0.34% compared with 1.15% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 16.74% as against Sensex's 5.55% rise.

The small-cap company has equity capital of Rs 118.52 crore. Face value per share is Rs 10.

Shareholders of Mangalore Chemicals and Fertilisers, in annual general meeting yesterday, 27 September 2016, rejected transaction with Zuari Agro Chemicals. Shareholders, however, approved appointment of Suresh Krishnan as managing director of Mangalore Chemicals and Fertilisers.

Zuari Fertilisers and Chemicals, the wholly-owned subsidiary of Zuari Agro Chemicals, held 53.03% stake in Mangalore Chemicals and Fertilisers as of 30 June 2016. Its shareholding increased from 16.47% to 53.03% in 2015 after acquisition of shares through open offer.

Mangalore Chemicals & Fertilizers reported net loss of Rs 8.36 crore in Q1 June 2016 as against net loss of Rs 212.24 crore in Q1 June 2015. Net sales declined 26.89% to Rs 554.66 crore in Q1 June 2016 over Q1 June 2015.

Mangalore Chemicals and Fertilizers is the largest manufacturer of chemicals fertilizers in Karnataka. The company with its wide range of products that include Urea, Di-Ammonium Phosphate, Muriate of Potash, Granulated Fertilizers, Micronutrients, Soil Conditioners and Specialty Fertilizers, touches and enriches the lives of farmers across Southern India.

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