Sesa Sterlite drops after clarification on reports of merger hiccups

Sesa Sterlite fell 1.99% to Rs 199.45 at 11:38 IST on BSE after the company issued clarification with regard to news item pertaining to Sesa Sterlite merger.

The company made the announcement after market hours yesterday, 20 January 2015.

Meanwhile, the S&P BSE Sensex was up 107.67 points or 0.37% at 28,888.97.

On BSE, so far 2.47 lakh shares were traded in the counter as against average daily volume of 4.68 lakh shares in the past one quarter.

The stock hit a high of Rs 205.85 and a low of Rs 196.50 so far during the day. The stock had hit a 52-week low of Rs 169.55 on 14 March 2014. The stock had hit a 52-week high of Rs 318.40 on 6 June 2014.

The stock had underperformed the market over the past one month till 20 January 2015, declining 2.28% compared with Sensex's 5.16% rise. The scrip had also underperformed the market in past one quarter, sliding 14.37% as against Sensex's 8.91% rise.

The large-cap company has equity capital of Rs 296.47 crore. Face value per share is Re 1.

With reference to the news captioned "Corp Affair Ministry, I-T Department oppose Sesa Sterlite Merger", Sesa Sterlite after trading hours yesterday, 20 January 2015, said that a Special Leave Petition (SLP) challenging the Scheme of Amalgamation & Arrangement ('Scheme') under Sections 391-394 of the Companies Act, 1956, was heard on 19 January 2015 by the Supreme Court and the court has fixed the matter for final disposal on 28 April 2015. The scheme was implemented in August 2013 and the company is defending the matter in the Supreme Court. The SLC filed separately by the Commissioner of Income Tax (CIT), Goa and Ministry of Corporate Affairs have been clubbed together. The Ministry of Corporate Affairs had filed the SLP on the ground that the scheme is against public policy.

Sesa Sterlite's consolidated net profit fell 32.4% to Rs 1619.29 crore on 22.7% decline in net sales to Rs 19448.14 crore in Q2 September 2014 over Q2 September 2013.

Sesa Sterlite is one of the world's largest diversified natural resources companies. Its business primarily involves exploring, extracting and processing minerals and oil & gas.

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