Rallis India gains after picking up remaining 19.49% stake in subsidiary

Rallis India rose 2.46% to Rs 164 at 13:10 IST on BSE after the company's board of directors at a meeting held on 5 February 2016, approved increase of the company's stake in its subsidiary, Metahelix Life Sciences from 80.51% to 100%.

The announcement was made by the company after market hours on Friday, 5 February 2016.

Meanwhile, the S&P BSE Sensex was up 37.97 points or 0.15% to 24,654.94.

On BSE, so far 14,739 shares were traded in the counter as against average daily volume of 1.77 lakh shares in the past one quarter. The stock hit a high of Rs 165.45 and a low of Rs 161 so far during the day. The stock hit a record high of Rs 142 on 21 January 2016. The stock hit a 52-week low of Rs 298.50 on 3 March 2015. The stock had underperformed the market over the past one month till 5 February 2016, sliding 8.66% compared with 3.77% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 18.54% as against Sensex's 6.41% fall.

The mid-cap company has equity capital of Rs 19.45 crore. Face value per share is Re 1.

Rallis India said that the remaining 19.49% stake in Metahelix Life Sciences (Metahelix) will be acquired for a cash consideration of Rs 73.33 crore. Consequently, Metahelix will become a wholly owned subsidiary of the company, on completion of the acquisition of the balance shares in Metahelix. The indicative time of completion of the acquisition is February 2016 in Metahelix, a seeds company. Metahelix reported net profit of Rs 16.52 crore on revenue from operations of Rs 309.99 crore for financial year 2014-15.

Rallis India's consolidated net profit fell 19.92% to Rs 20.41 crore on 20.4% decline in net sales to Rs 306.23 crore in Q3 December 2015 over Q3 December 2014.

Rallis India produces crop protection chemicals.

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