The Hindu Business Line : Citurgia Bio doubles on BIFR revival hopes

THE stock price of Citurgia Biochemicals, a company promoted by Bombay Dyeing, has almost doubled in just a week's time on market talk of company's revival package from the Board for Industrial and Financial Restructuring (BIFR) likely to be announced soon.

The stock has increased from Rs 14.35 last Thursday to today's closing price of Rs 28.50, a gain of 98 per cent on the BSE. In today's trading, the stock was locked in the 20-per cent upper circuit. Trading volumes in the counter also jumped sharply. Today's volumes were 69,609 shares compared to an average volume of 11,083 in the last two weeks.

Brokers said the stock is moving on market speculation of a BIFR revival package to be announced soon.

The possibility of restructuring is also being speculated in the market.

Company officials were not available for comments. However, the company in a notice to the BSE had stated that as part of the restructuring plans, it had sold the assets of the Citric Acid division (in Surat) and applied the consideration to settle dues of ICICI in full.

It paid part of the dues to Industrial Investment Bank of India Ltd and dues of the workers in full at the Citric Acid Division. It also paid dues to various statutory authorities associated with the division.

The company does not have any operational activity as of now so the revenues of the company are almost negligible. But in the last fiscal, it had an extraordinary income of Rs 7.04 crore, which resulted in a net profit of Rs 5.4 crore.

For the financial year ended March 31, 2004, it reported a net loss of Rs 21.2 crore on revenues of Rs 1.82 crore. It had negative reserves of almost Rs 25 crore for the 2004 fiscal.

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