Pennar Industries gains as RBI removes foreign buying restriction

Pennar Industries advanced 2.36% to Rs 60.75 at 10:37 IST on BSE, after the central bank removed restriction on purchase of shares by foreign portfolio investors in company.

Meanwhile, the S&P BSE Sensex was down 10.80 points or 0.04% at 28,022.05

On BSE, so far 2.74 lakh shares were traded in the counter as against average daily volume of 8.69 lakh shares in the past one quarter.

The stock hit a high of Rs 62.40 and a low of Rs 60.50 so far during the day. The stock hit a 52-week high of Rs 66.90 on 11 November 2014. The stock hit a 52-week low of Rs 18.25 on 24 December 2013.

The stock had outperformed the market over the past one month till 19 November 2014, rising 14.35% compared with the Sensex's 7.37% rise. The scrip had also outperformed the market in past one quarter, gaining 32.33% as against Sensex's 6.1% rise.

The small-cap company has equity capital of Rs 60.24 crore. Face value per share is Rs 5.

On Wednesday, 19 November 2014, the Reserve Bank of India (RBI) notified that the foreign shareholding by Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Pennar Industries have gone below the revised threshold limit. Hence, the restrictions placed on the purchase of shares of the company are withdrawn with immediate effect.

The RBI further advised that FIIs/RFPIs can now invest upto 35% of the paid up capital of Pennar Industries under the Portfolio Investment Scheme.

The RBI stated that Pennar Industries has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit from 24% to 35% for the purchase of its equity shares and convertible debentures by FIIs. The purchases could be made through primary market and through stock exchanges, the RBI said.

Pennar Industries' consolidated net profit rose 8% to Rs 6.37 crore on 20.5% growth in net sales to Rs 298.24 crore in Q2 September 2014 over Q2 September 2013.

Pennar Industries is one of the leading engineering organizations in India, well known for its expertise in providing engineered products & services.

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