Shah Alloys up on bonus pref float announcement

DALAL STREET SPIKES

Shah Alloys was up 2.96 per cent to Rs 323.70 compared with its previous close of Rs 314.40 with 162,478 shares being traded at the Bombay Stock Exchange. The hike in the scrip price followed a company announcement regarding its future plans.

The company plans to consider an issue of bonus shares, a preferential allotment of shares to a select group of investors, a FCCB issue, an ADR/ GDR issue, and an issue of warrants to promoters.

Once approved by the board, the company also plans to have an EGM to get the shareholder's consent for the same. Shah Alloys is engaged in the manufacture of mild steel, stainless steel, C T D bars, S S flats and pattas, and cold-rolled sheets.

The company's net profit for the quarter ended 30 June 2005 was Rs 10.12 crore and the net sales was Rs.258.10 crore as compared to Rs 7.12 crore and Rs 224.04 crore in the same quarter a year ago.