The Hindu Business Line : Capex plans lift Prakash Ind

Prakash Industries on Monday hit the upper circuit again, with rising volumes on both the NSE and BSE, as accumulation continued on fundamental triggers for the steel-making outfit such as capacity expansion and obtaining of iron ore as also coal mining rights.

The latest balance sheet mentions about getting the mining rights. The company has completed capacity expansions in its heavy structural rolling mill and wire-rod mill in the first quarter of this fiscal. It has also settled certain old dues with the lenders recently. In anticipation of the settlement, it had charged lower interest of Rs 6.88 lakh for the quarter ended June 30. The company has planned to offer on preferential basis around 55.56 lakh warrants at a price of Rs 80 each with a one for one conversion option into a share of Rs 10 each to one or more non-promoter investors.

Earlier, on September 27, the company allotted 5,55,556 warrants to Barclays Capital Mauritius and 50,00,000 warrants to Amarjoti Vanhjya Pvt Ltd on preferential basis at a price of Rs 68 per warrant.

Incidentally, the non-promoter holding has gone up to 40.29 per cent as on September 30, 2007, from 38.26 per cent as on September 30, 2006. According to market sources, FII interest in the counter has been increasing of late. The stock closed at Rs 134 with a gain of 5 per cent. It touched its 52-week high of Rs 140 on October 18.

JAYANTA MALLICK

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