NHC Foods spurts after RBI hikes FII limit

NHC Foods jumped 13.79% to Rs 34.25 at 12:25 IST on BSE, extending Wednesday's 2.21% rise triggered by the central bank allowing foreign institutional investors and non-resident Indians to increase stake in the company.

Meanwhile, the BSE Sensex was down 36.14 points, or 0.17%, to 20,693.24.

On BSE, so far 20,000 shares were traded in the counter, compared with an average volume of 11,647 shares in the past one quarter.

The stock hit a high of Rs 35.15 and a low of Rs 30.25 so far during the day. The stock hit a 52-week high of Rs 56.60 on 9 January 2013. The stock hit a 52-week low of Rs 26 on 25 November 2013.

Shares of NHC Foods rose 2.21% to Rs 30.10 on 8 January 2014. The stock has risen 16.30% in two sessions from Rs 29.45 on Tuesday, 7 January 2014.

The stock had underperformed the market over the past one month till 8 January 2014, sliding 7.38% compared with the Sensex's 1.27% fall. The scrip had also underperformed the market in past one quarter, falling 11.86% as against Sensex's 3.73% rise.

The small-cap company has an equity capital of Rs 5.79 crore. Face value per share is Rs 10.

The limit on investments in NHC Foods' equity shares and convertible debentures by foreign institutional investors through primary market and stock exchanges was raised to 49%, the Reserve Bank of India (RBI) said on Tuesday, 7 January 2014.

Non-resident Indians (NRI) and Persons of Indian Origin (PIO) can invest up to 24% of the company's paid-up capital, according to the RBI.

In November 2013, shareholders of NHC Foods at an extraordinary general meeting (EGM) had approved hiking FIIs' investment limit in the company from 24% to 49% and limit of NRIs holding in the firm to 24% from 10%.

Shareholders had also approved the company's proposal of raising funds through issue of equity shares via qualified institutional placement.

Net profit of NHC Foods declined 52% to Rs 0.24 crore on 1.20% decline in net sales to Rs 29.73 crore in Q2 September 2013 over Q2 September 2012.

NHC Foods is worldwide supplier of a complete range of spice products. It sells all types of ground spices & blends to worlds leading food multinationals and fast food chains in the USA, Europe, Middle East, Canada & Asia.

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