The Hindu Business Line : Ashco witnesses surge in volume, price

Kolkata, Sept.27 Ashco Industries, a medical equipment trading and contract research organisation, is witnessing surge in traded volume and upward price movement this month ahead of preferential allotment of one for one convertible warrants to promoters and certain investors.

Preferential issue

The company’s board has approved the preferential issue of 78 lakh convertible warrants at Rs 10 each to promoters and business associates on September 4. Mr Manohar Kotwani, COO, told Business Line that 60 per cent of the preferential warrants would go to the promoter group and the rest to the associates at a conversion price, fixed following relevant SEBI formula, of around Rs 37 each. Mr Kotwani said the allotment would be done within a week.

Some of the individuals in the promoter family have in September offloaded shares in the market to reduce the combined holding before the warrants issue. The total holding of the promoters as on June 30, 2007 was at 71.23 per cent, which has now come down to around 60 per cent. The stock on Thursday closed at Rs 33 on the BSE with a volume of 4.77 lakh shares. Interestingly, the counter’s two-week average daily traded quantity stands at 6.5 lakh shares.

Expansion plans

Recently Ashco has expanded infrastructure of its contract research facilities. It is currently carrying out a total of around 35 pilot and pivotal bio-equivalence and bio-availability studies. Apart from Mumbai, the company has analytical laboratories in Mumbai, Noida and Hyderabad.

More Stories on : Stocks | Stock Markets | Medical & Surgical Equipments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page