Zuari Agro Chemicals moves up after fund raising plan

Zuari Agro Chemicals jumped 5.4% to Rs 563 at 11:50 IST on BSE after the company said that its board of directors will meet on 21 November 2017, to consider raising of funds through various modes.

The announcement was made during market hours today, 16 November 2017.

Meanwhile, the S&P BSE Sensex was up 231.39 points, or 0.71% to 32,991.83. The S&P BSE Small-Cap index was up 105.28 points, or 0.61% to 17,378.68, underperforming the Sensex.

On the BSE, 33,746 shares were traded in the counter so far, compared with average daily volumes of 41,662 shares in the past one quarter. The stock had hit a high of Rs 566.20 and a low of Rs 529 so far during the day. The stock had hit a record high of Rs 689.45 on 24 October 2017. The stock had hit a 52-week low of Rs 178 on 18 November 2016.

The stock has dropped 5.57% in four sessions to Rs 534.15 yesterday, 15 November 2017, from a close of Rs 565.70 on 9 November 2017.

The stock had outperformed the market over the past one month till 15 November 2017, advancing 11.69% compared with the Sensex's 1.01% rise. The scrip had also outperformed the market over the past one quarter gaining 50.72% as against the Sensex's 4.17% rise. The scrip had also outperformed the market over the past one year jumping 156.49% as against the Sensex's 24.54% rise.

The small-cap company has equity capital of Rs 42.06 crore. Face value per share is Rs 10.

Zuari Agro Chemicals said that the company's board of directors will meet on 21 November 2017, to consider raising of funds by issue of equity shares and/or any other permissible securities convertible into equity shares through public issue and/or right issue and/or private placement including qualified institutional placement or through any other permissible mode or a combination thereof under applicable law, rules, regulations thereof and subject to such approvals as may be required.

The board will also consider approving ancillary action for the above mentioned "fund raising, including obtaining shareholders' approval for the same through requisite mode.

Zuari Agro Chemicals' net profit surged 299.7% to Rs 53.52 crore on 25% rise in net sales to Rs 1314.76 crore in Q2 September 2017 over Q2 September 2016.

Zuari Agro Chemicals is one of the leading fertilizer conglomerates in India. The company also imports fertilizers and farm nutrients. The company produces complex fertilizers of various grades along with seeds, pesticides, micro nutrients, and specialty fertilizers.

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