Nagreeka Exports stocks is buziing on the demerger news of its investment arm. The stock has touched an intra day high of Rs 41.75 and an intra day low of Rs 37.10. Currently, the share is quoting at Rs 40.70, up Rs 5.90, or 16.95%. It is trading with volumes of 70,550 shares, compared to its 5-day average of 8,698 shares, an increase of 711.12%. Yesterday the share closed up 1.02% or Rs 0.35 at Rs 34.80

The Kolkata-based yarn and knitted fabrics manufacturer Nagreeka Exports has completed demerger of its investment arm Nagreeka Capital & Infrastructure (NCIL). The demerged entity will have a paid-up capital of Rs 6.31 crore, split into 1.26 crore shares of Rs 5 each, according to a ET report.

The demerged company, with an investment portfolio of about Rs 52 crore, is likely to list on both the premier exchanges on Friday, according to senior company officials. Promoters would hold about 55% stake in the new company. “Nagreeka Exports’ investment portfolio (wherein, the funds have been invested in companies like Sterlite Industries and Sterlite Optical) has been demerged into a new company. As part of this, every shareholder of Nagreeka Exports will get a matching number of shares in the new company with a face value of Rs 5 (at a share swap ratio of 1:1).

Consequent to this, the face value of the shares of Nagreeka Exports will reduce from Rs 10 to Rs 5,” Nagreeka Exports managing director S Patwari said. NCIL as a fund has 90% of its investment in the Sterlite group. The fund holds close to about 43.3 lakh shares in Sterlite Industries and about 3.42 lakh in Sterlite Opticals. The company, in the longer run, would be like an infrastructure fund listed on the bourses. The new company’s investment portfolio, in today’s market value, would be around Rs 300 crore.

As part of restructuring, we have already transferred the corpus to the new company, Mr Patwari added.

NCIL, as a fund, would be investing in real estate and infrastructure projects, private equity funds, select stocks and REIT funds. According to company sources, the company is also scouting for opportunities in the power generation sector. “We will increase the fund size in due course. We have not worked out details as to how we would raise capital,” Mr Patwari said.