Mac Industries

Previous week's close: Rs 13.20

The stock has lost 12.8 per cent of value after the announcement of its merger with a group company. The Chennai-based MA Chidambaram group has announced the merger of three companies, MAC Industries, Southern Agrifurane into SI Sugars in the ratio of 2.5:1:1. The merger stands with retrospective effect from April 1st,1996. While the equity capital of the individual companies is Rs 14.83 crore, Rs 4.79 crore and Rs 2.93 crore respectively, the merged entity will have an equity of Rs 13.66 crore.

MAC Industries, primarily in the agro-business, had tapped the market four years back for aqua-culture. However, the industry has been plagued by several problems which has been capped by the recent Supreme Court orde. Mac Industries had posted turnover of Rs 126 crore and a net profit of Rs 1.7 crore in 1995-96. South India Sugars posted a loss of Rs 1.43 crore in March 1996.