PG Electroplast gets stronger after promoter group sells part stake

PG Electroplast rose 4.47% to Rs 418 at 11:30 IST on BSE after the company said that its promoter group has sold 4 lakh shares totaling to 2.44% of the shareholding in the market yesterday, 28 December 2017.

The announcement was made during market hours today, 29 December 2017. The stock had gained 3.95% to Rs 400.10 yesterday, 28 December 2017.

Meanwhile, the S&P BSE Sensex was up 136.34 points, or 0.4% to 33,984.37. The S&P BSE Small-Cap index was up 124.41 points, or 0.65% to 19,233.64, outperforming the Sensex.

On the BSE, 6,394 shares were traded in the counter so far, compared with average daily volumes of 30,027 shares in the past one quarter. The stock had hit a high of Rs 419.60 and a low of Rs 405 so far during the day. The stock had hit a 52-week high of Rs 450.45 on 1 November 2017. The stock had hit a 52-week low of Rs 129.40 on 29 December 2016.

The small-cap company has equity capital of Rs 16.41 crore. Face value per share is Rs 10.

With the sale, the stake of the promoter group has come down to 62.56% from current 65%.

The proceeds from the sales will be infused back into the company as the unsecured zero coupon loan to the company and with this infusion, company's ongoing growth plans will get further boost and capex and working capital requirement will be met completely.

The company's management continues to see exciting opportunities and with new capacities and newly installed PU paint and tooling capabilities, company is uniquely positioned in the consumer durable & automotive plastics space in India, it added.

PG Electroplast's net profit stood at Rs 2.02 crore in Q2 September 2017 compared to no profit/no loss in Q2 September 2016. Net sales rose 19.6% to Rs 90.3 crore in Q2 September 2017 over Q2 September 2016.

PG Electroplast is a plastic molding and electronic manufacturing services company for leading consumer durable and automotive plastic companies in India.

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