Fulford (India) rose 1.25% to Rs 1,435 at 9:55 IST on BSE, with the stock recovering on bargain hunting after Tuesday's slide triggered by the firm's promoter Dashtag deciding not to a make the public announcement of delisting offer at this time.
Meanwhile, the S&P BSE Sensex was down 2.60 points or 0.01% at 28,441.41.
On BSE, so far 1,114 shares were traded in the counter as against average daily volume of 8,444 shares in the past two weeks.
The stock was volatile. The stock lost as much as 8.19% at the day's low of Rs 1,301.05 so far during the day. The stock rose as much as 1.25% at the day's high of Rs 1,435 so far during the day.
Shares of Fulford (India) had tanked by the maximum permissible level of 20% to settle at Rs 1,417.25 on Tuesday, 2 December 2014, after the company during market hours on Tuesday, 2 December 2014 said that the company's promoter Dashtag decided not to a make the public announcement of the delisting offer at this time.
Dashtag, the promoter of Fulford (India) said that since the announcement of the delisting proposal, it has noted an abnormal upward spurt in the share price of Fulford (India) to levels substantially higher than the floor price and indicative price. By a letter dated 16 June 2014, Dashtag also informed Fulford (India) that it did not believe that a spurt in Fulford (India)'s share price was reflective of the business fundamentals of Fulford (India) and that Dashtag does not intend to make acquisitions that do not satisfy its financial expectations.
Subsequently, the share price of the Fulford (India) has continued to remain substantially higher than the floor price and indicative price, the statement said. Dashtag still believes that the current share price of Fulford (India) is not reflective of its business fundamentals, it added. In the circumstances, in view of the current share price of Fulford (India) being substantially higher than indicative price of Rs 1,150 per share for the delisting, Dashtag has decided not to make the public announcement of the delisting offer at this time, the statement said.
Dashtag further noted that the shareholder approval is valid for a period of twelve months. In the event that market conditions align with the financial expectations of Dashtag during such period, Dashtag may take a decision to proceed with the public announcement of the delisting offer, failing which it may consider other strategic alternatives in relation to its ownership of shares in Fulford (India). Dashtag will keep the board of directors of Fulford (India) informed of any development in this regard, the statement said.
Dashtag also said that the Securties and Exchange Board of India (Sebi), vide a press release dated 19 November 2014, proposed some changes to the delisting regulations, the implications of which will need to be evaluated.
Promoter Dashtag held 74.96% stake in Fulford (India) (as per the shareholding pattern as on 30 September 2014).
Fulford (India) reported 53.5% rise in net profit to Rs 6.71 crore on 7.9% growth in net sales to Rs 64.39 crore in Q2 September 2014 over Q2 September 2013.
Fulford (India) manufactures antibiotics and anti-allergy products.
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