The Hindu Business Line : Suryajyoti Spinning sees surge in traded quantity

Kolkata, Aug. 3 Suryajyoti Spinning Mills saw a surge in traded quantity on the BSE today with 5.13 lakh shares changing hands against its two-week average of 91,355 shares. The stock closed at Rs 72.90 on the BSE against Thursday’s Rs 71.55, a gain of 1.89 per cent. Over a week’s period, the stock gained 10.2 per cent.

Over the last month, the promoters of the company through one of their outfits – Suryajyoti Infotech Ltd – has been picking up the stock of Suryajyoti Spinning Mills from the market.

Mr A.K. Agarwal, Executive Director of Suryajoti Spinning, also a Director of Suryajyoti Infotech, however, clarified to Business Line that promoters did not indulge in market purchase today.

The infotech company has acquired a total of 1,62,200 equity shares of Suryajyoti Spinning, roughly about 1.14 per cent of the paid-up equity of Rs 1.41 crore, through market purchases at an average price of Rs 66.40 per equity share.

Aims to add 5% stake

“Our target is to add up about 5 per cent during this fiscal through creeping acquisition route to shore up promoter holding in Suryajyoti Spinning.”

Till June 30, the promoters jointly held 35.33 per cent, which has now moved up to about 37 per cent.

Interestingly, four broking firms had a total of around 4.5 per cent stake in the company till the end of the April – June 2007 quarter.

Strategic investors

Mr Agarwal confirmed the paid-up equity of the company is set to witness inflation though fresh overseas investments and conversion of FCCBs already issued.

“Talks are on with a number of such would-be strategic investors including our Italian technical collaborator for the leg wear fabric venture Pangea SRL.”

He, however, declined to comment on the quantum of capital expansion and the timeframe they are looking for roping in strategic partners.

Growth plan

“We have an aggressive growth plan – both through organic and inorganic ways. The quantum of equity partnership would in line with such plans. However, we would take a final call on the equity infusion after our fabric project is in operation by the end of this financial year,” he added.

He also indicated that Suryajyoti Spinning may enter garment manufacturing in 2008.

The move by the promoters to raise their holding was aimed at maintaining a balance after equity dilution through FCCB conversion and fresh equity infusion.

The company has raised $10 million by issuing foreign currency convertible bonds, which are convertible into equity shares at a price of Rs 85 per share.

The capital raised is being used to part-finance its new bottom-weight fabric project and for modernisation and expansion schemes of the company.

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