Ruby Mills revives as MD gets bail

Ruby Mills gained 4.93% to Rs 367 at 11:15 IST on BSE after the company said that Bharat Shah, Managing Director of the company, has been granted bail by the sessions court, Thane.

The announcement was made after market hours yesterday, 12 October 2017.

Meanwhile, the S&P BSE Sensex was up 245.60 points or 0.76% at 32,427.82. The S&P BSE Small-Cap index was up 80.91 points or 0.48% at 16,984.56.

High volumes were witnessed on the counter. On the BSE, 11,326 shares were traded on the counter so far as against the average daily volumes of 4,483 shares in the past one quarter. The stock had hit a high of Rs 383.80 and a low of Rs 355.50 so far during the day. The stock had hit a 52-week high of Rs 495 on 14 October 2016 and a 52-week low of Rs 284.60 on 23 November 2016.

The stock has gained 12.11% in three sessions to its ruling price, from a close of Rs 327.35 on 10 October 2017.

The stock had outperformed the market over the past one month till 12 October 2017, gaining 3.75% compared with the Sensex's 0.07% rise. The stock had, however, underperformed the market over the past one quarter, falling 6.43% as against the Sensex's 1.19% rise. The scrip had also underperformed the market over the past one year, declining 27.18% as against the Sensex's 14.6% rise.

The small-cap company has equity capital of Rs 8.36 crore. Face value per share is Rs 5.

Ruby Mills said that Bharat Shah, Managing Director of the company, has been granted bail by the sessions court Thane, on 10 October 2017 and he was released on 12 October 2017.

On 3 August 2017, the company had informed about the arrest of Bharat Shah, Managing Director of the company by the Central Bureau of Investigation in connection with an alleged offence committed against a bank by one of the buyers of the office premises in the company's IT Park. The company had said that it was in no way connected to the offence.

The company reiterated that the arrest would not have a significant impact since the company has an executive Chairman, two managing directors and a CEO, so there is an adequate management bandwidth during his absence.

The bank was claiming Rs 151 crore plus interest. However, the company's attorney opined that this is a matter between the prospective buyer and their bankers and the company is not even contingently liable in the matter.

Ruby Mills' net profit fell 2.1% to Rs 8.42 crore on 9.2% to Rs 51.70 crore in Q1 June 2017 over Q1 June 2016.

Ruby Mills is engaged in textiles business.

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