Shakti Pumps gains as board approves preferential issue

Shakti Pumps (India) advanced 3.2% to Rs 77.50 at 15:05 IST on BSE after the company's board of directors approved issue of warrants to promoter and promoter group on a preferential basis.

The announcement was made during market hours today, 11 December 2013.

Meanwhile, the S&P BSE Sensex was down 170.88 points, or 0.8%, to 21,084.38

On BSE, so far 91,424 shares were traded in the counter compared with average volume of 39,769 shares over the past one quarter.

The stock hit a high of Rs 79.10 and a low of Rs 76 so far during the day. The stock had hit a 52-week high of Rs 84.50 on 29 November 2013 and a 52-week low of Rs 38 on 19 August 2013.

The stock had outperformed the market over the past one month till 10 December 2013, rising 25.69% compared with the Sensex's 2.85% rise. The scrip had also outperformed the market in past one quarter, gaining 74.65% as against Sensex's 6.29% rise.

The small-cap stock has an equity capital of Rs 15.24 crore. Face value per share is Rs 10.

Shakti Pumps (India) said that the company's board of directors at its meeting held today, 11 December 2013, approved issue of 15 lakh warrants to promoter and promoter group convertible into one equity share of the company on a preferential basis at a price to be determined in accordance with the Regulations for preferential issue as contained in SEBI (ICDR) Regulations, 2009 subject to approval of the members in the Extra-Ordinary General Meeting. Promoters owned 44.86% stake in Shakti Pumps (India) (as at 30 September 2013).

Shakti Pumps (India) said it will take shareholders' approval for the proposed warrants issue to promoter and promoter group at an extra-ordinary general meeting scheduled to be held on 9 January 2014.

Shakti Pumps (India)'s net profit rose 36.7% to Rs 6.03 crore on 47.4% increase in net sales to Rs 75.30 crore in Q2 September 2013 over Q2 September 2012.

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