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Rich brew for Apeejay Tea on delisting plan
Monday, September 3, 2007
Apeejay Tea hit 20% upper circuit at Rs 108 at 15:09 IST on BSE following the company’s plans to consider delisting of shares from BSE.
The BSE Sensex was up 102 points, or 0.67%, to 15420, as fears of a US economic slowdown eased after US President George W. Bush and Federal Reserve Chairman Ben Bernanke reassured investors on Friday (31 August 2007) they would do what was needed to shelter the world's largest economy from recent market turmoil.
Data released during trading hours on Friday (31 August 2007) showing strong economic growth in India in Q1 June 2007 and easing of inflation also aided upmove on the bourses.
On BSE, 50,255 shares were traded on the counter today. The scrip had an average daily volume of 4,015 shares in the past one quarter.
Shares of small-cap tea producer had hit a high of Rs 108 which is a 52-week high for the scrip. The stock hit a low of Rs 89.70 so far during the day. The stock had touched a 52-week low of Rs 61.50 on 8 March 2007.
Apeejay Tea had underperformed the market over the last one month to 31 August 2007, declining 2.28% compared to the Sensex’s rise of 2.22%. It had also underperformed the market over the past quarter, declining 0.33% compared to the Sensex’s gain of 5.13%.
From a recent high of Rs 93.30 on 31 July 2007 the scrip declined 16.02% to Rs 78.35 on 24 August 2007. It rose to Rs 90 on 31 August 2007,
The company's current equity is Rs 6 crore. Face value per share is Rs 10.
The company announced during the market hours today, 3 September 2007 that its board would meet on 4 September 2007 to consider a proposal from the founders of the company to delist shares from the BSE. Promoters currently hold 74.27% stake (as on 30 June 2007).
Apeejay Tea reported a net loss of Rs Rs 0.78 crore in Q1 June 2007 as against net profit of Rs 0.32 crore in Q1 June 2006. Sales declined 8.45% to Rs 13.44 crore in Q1 June 2007 over Q1 June 2006.
The company belonging to Apeejay Group which has 17 estates spread over 50000 acres in Assam, producing close to 25 million kilograms of tea (peak crop).
