Wimco Hits 52-Week High Over Sebi Fiat

The share price of Wimco hit the 20 per cent upper circuit and ended at a fresh 52-week high today following the Sebi's direction asking the company's parent, Swedish Match, to make an open offer to buy 20 per cent more pie in the Indian unit.

The stock closed at Rs 35.15, after rising 17.95 per cent, amid a volume of 3.30 lakh shares on the BSE. During May 17-June 6, the scrip rose 155.6 per cent to Rs 29.80 from Rs 11.65.

The market had been expecting Sebi's decision asking Swedish Match to make a 20 per cent open offer in the Indian arm as it had violated Sebi takeover guidelines in 2000, when it bought 22 per cent of the Indian unit from the Jatia family. The offer, to be made at a minimum of Rs 35, will have to be made within 45 days from June 4.

 

Incorporated in 1923 as The Western India Match Company, Wimco got its present name in 1973 when it diversified into other areas. A part of the reputed Jatia group of industries, it is managed by RGN Swamy, chairman, SGA Flapper, managing director, and Shivkumar Jatia.

Its product portfolio includes safety matches, fruit concentrates, and agro-farm forestry. Its client list includes Nestle, Glaxo and Lipton. Its subsidiaries are Sunsip, Clean Foods Corporation, Wimco Exports and Wimco International. The company also has a sizeable export turnover through exports to Africa, South America, West Asia, Japan, Europe, Australia, and other countries. It tied up with Heinz India Pvt Ltd to produce tomato ketch-up.

During the third quarter ended December 31, 2001, Wimco registered a net profit of Rs 2.89 crore compared to a net loss of Rs 1.41 crore in the corresponding period last year. Net sales rose by 8.65 per cent to Rs 45.99 crore (Rs 42.13 crore).