Orient Abrasives declines after promoters offload 25.52% stake in the firm

Orient Abrasives declined 3.45% to Rs 25.20 at 15:00 IST on BSE after Mr S G Rajgarhia, along with other promoters entered into a share purchase agreement, with Bombay Minerals and Cura Global Holdings to sell a total of 25.52% stake in the firm.

Shares of Ashapura Minechem declined 2.75% to Rs 62.

The company made announcement after market hours yesterday, 8 June 2015,

Meanwhile, the BSE Sensex was down 65.62 points, or 0.18%, to 26,475.58.

On BSE, so far 2.77 lakh shares were traded in the counter, compared with an average volume of 33,866 shares in the past one quarter.

The stock hit a high of Rs 26.40 and a low of Rs 25.15 so far during the day. The stock hit a 52-week high of Rs 28.75 on 9 March 2015. The stock hit a 52-week low of Rs 18.55 on 6 June 2014.

The stock had outperformed the market over the past one month till 8 June 2015, gaining 4.4% compared with 2.15% decline in the Sensex. The scrip had also outperformed the market in past one quarter, dropping 3.33% as against Sensex's 9.94% fall.

The small-cap stock has an equity capital of Rs 11.96 crore. Face value per share is Re 1.

Orient Abrasives said that Mr S G Rajgarhia, along with other promoters of Orient Abrasives, have entered into a share purchase agreement, on 8 June 2015 with Bombay Minerals and Cura Global Holdings, a company incorporated under the laws of Mauritius, for sale of 3.05 crore shares held by them in the company (aggregating 25.52%) at a price of Rs 29.50 per share. Other sellers under the share purchase agreement include: Mrs Usha Rajgarhia, Mrs Anisha Mittal and Ms Bhavna Rajgarhia. The proposed sale of shares as aforesaid is subject to various conditions precedent including regulatory approvals. In accordance with the prevalent open offer rules and regulations as stipulated under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011, they shall also make an open offer for acquisition of OAL's shares from the public up to 26% at Rs 29.50 per share.

Ashapura Minechem separately announced after market hours yesterday, 8 June 2015, that the company's wholly-owned subsidiary Bombay Minerals along with Cura Global Holdings, Mauritius (a part of the prominent overseas investment fund Lambasa Global Opportunity Fund B.V.) have signed an agreement to jointly acquire 25.52% of equity shares of Orient Abrasives at a price of Rs 29.50 per share from its current promoters.

Orient Abrasives' net profit fell 32.2% to Rs 0.59 crore on 13.9% rise in total income to Rs 42.79 crore in Q4 March 2015 over Q4 March 2014.

Orient Abrasives was set up in 1974, in technical collaboration with Karborundum, Bentueky, Czechoslovakia by the Rajgarhia group of industries as a venture to manufacture Calcined and Fused Alumina products.

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