Prakash Steelage gains as board to consider stock split

Prakash Steelage rose 4.59% to Rs 130.90 at 10:25 IST on BSE after the company said that a meeting of the board of directors of the company will be held on 29 December 2015, to consider stock split.

The company made the announcement on Sunday, 20 December 2015.

Meanwhile, the BSE Sensex was up 93.75 points, or 0.37%, to 25,612.97.

On BSE, so far 525 shares were traded in the counter, compared with an average volume of 9,411 shares in the past one quarter.

The stock hit a high of Rs 131 and a low of Rs 129.45 so far during the day. The stock hit a 52-week high of Rs 171.90 on 18 February 2015. The stock hit a 52-week low of Rs 93.10 on 26 November 2015.

The stock had outperformed the market over the past one month till 18 December 2015, rising 29.29% compared with 0.14% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 16.74% as against Sensex's 2.67% fall.

The small-cap company has an equity capital of Rs 17.50 crore. Face value per share is Rs 10.

Prakash Steelage said that the board of directors in its meeting scheduled on 29 December 2015, will also consider and fix the record date for the stock split. On that day, the board of directors will also approve the dissolution of wholly owned subsidiary, Pioneer Stainless and Alloys FZC, UAE. The board of directors will also consider the proposal of further dilution of company's stake in the equity share capital of Tubacex Prakash India. The board of directors will also approve the resignation of Mr. Hemant P. Kanugo from the position of Chief Financial Officer of the company and will also consider and approve the appointment of Mr. Ashok M. Seth as Executive Director (in full time employment) of the company.

The board of directors will also consider designating Mr. Ashok M. Seth as Chief Financial Officer and key managerial personnel of the company. The board of directors will also on that day take on record the smooth completion of process of implementation of joint venture agreement entered between the company and Tubacex S.A. dated 13 February 2015.

Prakash Steelage's net profit rose 16.7% to Rs 10.11 crore on 73.2% decline in net sales to Rs 66.49 crore in Q2 September 2015 over Q2 September 2014.

Prakash Steelage is a manufacturer of high quality stainless steel seamless and welded pipes, tubes & u-tubes.

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