Selan Exploration Technology jumps after RBI removes foreign buying restriction

Selan Exploration Technology rose 8.41% to Rs 412 at 9:44 IST on BSE after the central bank removed restriction on purchase of shares by foreign portfolio investors in company.

Meanwhile, the BSE Sensex was up 34.20 points, or 0.12%, to 28,597.02.

On BSE, so far 29,000 shares were traded in the counter, compared with an average volume of 12,279 shares in the past one quarter.

The stock hit a high of Rs 422.80 and a low of Rs 391.05 so far during the day. The stock hit a record high of Rs 677 on 26 May 2014. The stock hit a 52-week low of Rs 289 on 16 December 2013.

The stock had underperformed the market over the past one month till 4 December 2014, falling 20.77% compared with 2.52% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 32.04% as against Sensex's 5.45% rise.

The small-cap company has an equity capital of Rs 16.40 crore. Face value per share is Rs 10.

The Reserve Bank of India on Thursday, 4 December 2014, notified that the foreign shareholding by Non-Resident Indians (NRI)/Persons of Indian Origins (PIOs) in Selan Exploration Technology have gone below the revised threshold caution limit. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.

The RBI further notified that the NRI/PIOs can now invest up to 24% of the paid up capital of Selan Exploration Technology under the Portfolio Investment Scheme. The Reserve Bank has stated that Selan Exploration Technology has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by NRI/PIOs. The purchases could be made through primary market and stock exchanges, the RBI said.

Net profit of Selan Explorations Technology declined 19.10% to Rs 9.57 crore on 3.76% decline in net sales to Rs 23.31 crore in Q2 September 2014 over Q2 September 2013.

Selan Exploration Technology is engaged in oil exploration and production since 1992.

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