Orient Paper & Industries jumped 8.57% to Rs 81.05 at 14:54 IST on BSE after the company said its board of directors accorded in-principle consent for vertical demerger of consumer electric business of the company into a wholly owned subsidiary.
The announcement was made during market hours today, 15 September 2016.Meanwhile, the S&P BSE Sensex was up 32.20 points or 0.11% at 28,404.43.
The stock surged on high volumes. On BSE, so far 17.07 lakh shares were traded in the counter as against average daily volume of 1.77 lakh shares in the past one quarter. The stock hit a high of Rs 84.30 so far during the day, which is a 52-week high for the counter. The stock hit a low of Rs 75.10 so far during the day. The stock had hit a 52-week low of Rs 23.35 on 9 November 2015. The stock had outperformed the market over the past one month till 14 September 2016, advancing 27.93% compared with 0.78% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 69.08% as against Sensex's 7.49% rise.
The small-cap company has equity capital of Rs 20.49 crore. Face value per share is Rs 1.
The in-principle decision to demerge the electric division is to facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies.
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Orient Paper & Industries' board of directors at its meeting held today, 15 September 2016, decided to raise capital through rights issue of equity shares of the company for an amount aggregating to Rs 50 crore at a ratio, price, record date and other matters to be fixed at a later date, subject to necessary approvals.
Orient Paper & Industries reported net loss of Rs 3.43 crore in Q1 June 2016 as against net loss of Rs 5.90 crore in Q1 June 2015. Net sales declined 5.2% to Rs 392.34 crore in Q1 June 2016 over Q1 June 2015.
Orient Paper & Industries is engaged in the manufacture and sale of paper with a wide range of writing, printing, industrial and specialty papers.
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