Fulford (India) was locked at 10% upper circuit at Rs 1086.35 at 13:02 IST on BSE, with the stock extending recent steep rally triggered by the company's promoter offering a substantial premium to delist shares of Indian unit.
Meanwhile, the S&P BSE Sensex was up 116.23 points or 0.52% at 22,582.42.
On BSE, so far 8,024 shares were traded in the counter as against average daily volume of 1,389 shares in the past one quarter.
The stock opened with an upward gap, surging by the maximum 10% daily circuit and remained locked at the 10% level at Rs 1086.35 so far in the day, also its 52-week high. The stock had hit a 52-week low of Rs 450 on 1 August 2013.
The stock had outperformed the market over the past one month till 29 April 2014, surging 43.17% compared with the Sensex's 0.56% rise. The scrip had also outperformed the market in past one quarter, jumping 33.2% as against Sensex's 8.81% rise.
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The small-cap company has equity capital of Rs 3.90 crore. Face value per share is Rs 10.
Shares of Fulford (India) have rallied 58.39% in three trading sessions from a recent low of Rs 685.85 on 25 April 2014, after the company after market hours on Friday, 25 April 2014 said that the company has received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of the company. The indicative price for the delisting was fixed at Rs 1150 per share, a 67.67% premium over Fulford (India)'s closing price of Rs 685.85 on the BSE on Friday, 25 April 2014.
Dashtag, the promoter, plans to acquire 9.76 lakh shares, representing 25.05% of the paid-up equity share capital of Fulford (India). Promoters owned 74.95% stake in Fulford (India) as on 31 March 2014.
Dashtag's objective in making the delisting offer is to obtain full ownership of the target company, which will provide enhanced operational flexibility to the acquirer's business in India. Additionally, the foreign promoter believes that on account of low liquidity in Fulford (India)'s equity shares, the delisting offer would provide the public shareholders with an ability to exit fully at an attractive price.
The acquirer is of the view that the indicative price is an attractive price for the public shareholders of the target company subject to the acquirer's right to accept or reject the price finally discovered pursuant to the reverse book building process under the delisting regulations, Fulford (India) said.
Meanwhile, the board of directors of the company at their meeting held on Saturday, 26 April 2014, approved the delisting offer and intends to seek the approval of the shareholders through a postal ballot in terms of the delisting regulations. The floor price for the delisting offer has been set at Rs 701.71 per share, Fulford (India) said in a statement.
Fulford (India) reported net profit of Rs 3.48 crore in Q4 December 2013 as against net loss of Rs 1.03 crore in Q4 December 2012. Net sales rose 1.5% to Rs 55.83 crore in Q4 December 2013 over Q4 December 2012.
Fulford (India) manufactures antibiotics and anti-allergy products.
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