Sabero Organics Gujarat rose 3.09% to Rs 126.70 at 11:47 IST on BSE after the company said that the board of directors of the company and Coromandel International have approved the merger of the company with Coromandel International.
The announcement was made after market hours on Friday, 24 January 2014.
Shares of Coromandel International were off 6.95% at Rs 227.
Meanwhile, the S&P BSE Sensex was down 339.12 points or 1.6% at 20,794.44.
On BSE, so far 72,000 Sabero Organics Gujarat shares exchanged hands, compared with average daily volume of 26,867 shares in the past one quarter.
The stock hit a high of Rs 135.95 and a low of Rs 126 so far during the day. The stock had hit a 52-week high of Rs 157.35 on 11 December 2013. The stock had hit a 52-week low of Rs 70.50 on 4 March 2013.
The stock had underperformed the market over the past one month till 24 January 2014, sliding 13.69% compared with the Sensex's 0.48% rise. The scrip had also underperformed the market in past one quarter, declining 5.53% as against Sensex's 1.97% rise.
The small-cap company has equity capital of Rs 33.87 crore. Face value per share is Rs 10.
Sabero Organics Gujarat (SOGL) said that the board of directors of Coromandel International (Coromandel) and SOGL, a subsidiary of Coromandel, at their respective meetings held on Friday, 24 January 2014, have approved merger of SOGL with Coromandel through a scheme of amalgamation, subject to approval of the stock exchanges, shareholders, creditors, concerned High Courts/Tribunal, and other regulators as applicable. As per the scheme, the public shareholders of SOGL will be issued shares in Coromandel in the ratio of five equity shares of Re 1 each of Coromandel for every eight equity shares of Rs 10 each of SOGL. The shares held by Coromandel and its wholly owned subsidiary Parry Chemicals (PCL) in SOGL shall get extinguished. In terms of the scheme, amalgamation of SOGL with Coromandel will be followed by the dissolution of SOGL.
Coromandel, along with PCL, holds 74.9% equity stake in SOGL.
Meanwhile, SOGL during trading hours today, 27 January 2014, said that the appointed date for the scheme of amalgamation is 1 April 2014.
Sabero Organics Gujarat's consolidated net profit jumped 84.2% to Rs 3.72 crore on 33.4% growth in net sales to Rs 155.06 crore in Q3 December 2013 over Q3 December 2012.
Sabero Organics Gujarat manufactures speciality chemicals and crop protection chemicals. Its manufacturing facilities are located in Gujarat, India. The company has a diverse product portfolio of fungicides, herbicides, insecticides & speciality chemicals.
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