Vardhman Special Steels advances on fund raising

Vardhman Special Steels was up 1.14% to Rs 151.45 at 9:41 IST on BSE after the company approved allotment of shares aggregating to Rs 50 crore to qualified institutional buyers.

The announcement was made after market hours yesterday, 21 February 2018.

Meanwhile, the S&P BSE Sensex was down 147.09 points or 0.43% at 33,697.77. The S&P BSE Small-Cap index fell 0.37%, outperforming the Sensex.

On the BSE, 87 shares were traded on the counter so far as against average daily volumes of 10,711 shares in the past one quarter. The stock had hit a high of Rs 152 and a low of Rs 148.50 so far during the day. The stock had hit a record high of Rs 194.65 on 31 October 2017 and a 52-week low of Rs 77.15 on 9 March 2017.

The stock had outperformed the market over the past one month till 21 February 2018, sliding 0.03% compared with the Sensex's 4.69% fall. The stock had, however, underperformed the market over the past one quarter, declining 15.56% as against the Sensex's 1.09% rise. The scrip had outperformed the market over the past one year, surging 74.29% as against the Sensex's 17.67% rise.

The small-cap company has equity capital of Rs 32.13 crore. Face value per share is Rs 10.

Vardhman Special Steels said that the fund raising committee of the board of directors of the company, at its meeting held on 21 February 2018, approved the allotment of 35.72 lakh shares pursuant to the qualified institutional placement (QIP) to eligibile qualified institutional buyers (QIBs) at the issue price of Rs 140 per share, aggregating to Rs 50 crore.

Vardhman Special Steels' net profit rose 157.8% to Rs 9.54 crore on 26.9% growth in net sales to Rs 218.42 crore in Q3 December 2017 over Q3 December 2016.

Vardhman Special Steels is engaged in offering steel bars and rods.

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