The Hindu Business Line : Sujana Metal: Up on hopes of higher preferential price

Sujana Metal Products shot up on Monday by four per cent with a traded volume of 5.56 lakh shares on the BSE. According to market circles, the restructured steel product company is planning to place shares at a price substantially higher than the current market price of Rs 34.50.

Mr Hanumantha Rao, Director Finance of the company, confirmed that Sujana was looking for equity placements to promoters and non-promoters to mop up funds for expansion. However, he said the company has not fixed the price of shares meant for placement and sought opinion from BSE and SEBI on this issue as the business of the company and stock price has undergone a substantial change of late.

Prabhudas Liladhar has been appointed as an advisor to such proposed placements

The stock of restructured company post-demerger of towers division and after amalgamation of Sujana Steels Ltd with it has been face valued at Rs 5 instead of Rs 10 earlier. Demerger of towers division and amalgamation of Sujana Steels Ltd with Sujana Metal Products Ltd have been approved by the High Court of Andhra Pradesh on Apri1 10 and the certified copy of the order has been received on May 3, 2007 and filed with the Registrar of Companies, Andhra Pradesh on May 4, 2007. The appointed date for the demerger and amalgamation was, however, July 1, 2006.

Jayanta Mallick

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