Punj Lloyd gains as Singapore subsidiary sells its entire stake in a firm

Punj Lloyd rose 1.52% to Rs 30.05 at 11:56 IST on BSE after the company said that its wholly-owned Singapore based subsidiary has sold its entire shareholding in Olive Group Capital for a total consideration of $20 million.

The announcement was made after market hours on Wednesday, 23 October 2013.

Meanwhile, the S&P BSE Sensex was up 186.36 points or 0.9% at 20,954.24.

On BSE, 7.08 lakh shares were traded in the counter as against average daily volume of 8.10 lakh shares in the past one quarter.

The stock hit a high of Rs 30.70 and a low of Rs 29.80 so far during the day. The stock had hit a 52-week high of Rs 64.10 on 9 January 2013. The stock had hit a record low of Rs 20.25 on 4 September 2013.

The stock had outperformed the market over the past one month till 23 October 2013, surging 28.7% compared with the Sensex's 4.36% rise. The scrip had, however, underperformed the market in past one quarter, declining 3.58% as against Sensex's 2.29% rise.

The small-cap company has equity capital of Rs 66.42 crore. Face value per share is Rs 2.

Punj Lloyd said that Punj Lloyd Pte Ltd., a Singapore based wholly owned subsidiary of the company, has sold its entire shareholding in Olive Group Capital, comprising 27.78% of its capital, for a total consideration of $20 million for a mix of initial and deferred consideration. The deferred consideration of approximately $11 million shall be received with interest thereon. Punj Lloyd Group had invested $14 million (approx) in Olive Group.

Punj Lloyd also announced that it has been awarded a contract, on cost plus basis, for setting up of various infrastructure facilities including civil, structural, mechanical, electrical & instrumentation, piping, cross country pipelines, horizontal direction drilling, equipment assembly, fabrication and erection, marine work, tankages work and electrical and other associated and miscellaneous works and rectification of defective works at a leading refinery in India. The approximate cost of the said works is Rs 275 crore, it said.

Punj Lloyd reported consolidated net profit of Rs 40.41 crore in Q1 June 2013 as against net loss of Rs 13.37 crore in Q1 June 2012. Net sales rose 10.8% to Rs 3000.26 crore in Q1 June 2013 over Q1 June 2012.

The Punj Lloyd Group is a diversified international conglomerate offering engineering, procurement and construction (EPC) services in energy and infrastructure along with engineering and manufacturing capabilities in the defence sector.

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