The Hindu Business Line : REI Agro gets re-listing post restructuring

The company had been delisted on September 22, as it decided to go in for a de-merger. The retail arm of the company was de-merged as REI Six Ten Retail Ltd.

Our Bureau

Mumbai, Nov. 25 The stock of mid-cap basmati rice processing and marketing company REI Agro Ltd plunged when it got re-listed after the restructuring on Tuesday. After opening at Rs 600 on the NSE, the stock touched a high of Rs 720 but closed lower at Rs 480.65 on the NSE. During the day, it touched a low of Rs 334. The company’s stock closed at Rs 950 on September 19, when it last traded as combined entity.

A total of 1.26 lakh shares of REI Agro were traded.

On the BSE, the stock fell even more. The stock opened at Rs 800 and touched a high of Rs 999 but ended sharply from that levels at Rs 455.65. About 5.86 lakh shares were traded.

Demerger

The company had been delisted on September 22 this year as it decided to go in for a de-merger exercise. The retail arm of the company was de-merged into a separate entity called REI Six Ten Retail Ltd.

“The resulting company issued nine equity shares of Rs 10 each for every 20 equity shares of Rs 10 each held in REI Agro,” the company had stated in a notice to the BSE.

Upon the de-merger, the share capital of the company was “reduced by cancelling a sum of Rs 4 from each of the equity shares of Rs 10 and thereafter five such equity shares of Rs 6 each have been consolidated into three fully paid-up equity shares of Rs 10 each,” stated the notice.

Share value

The paid-up equity capital of the company after the demerger adds up to Rs 289.30 lakh, which equals to 2.89 crore equity shares of a face value of Rs 10 each. Before the restructuring, the paid-up equity capital of the company was Rs 4,817.17 lakh, consisting of 4.81 crore equity shares.

The company posted a lower profit after tax of Rs 18.14 crore for the quarter ended September 30, 2008, compared with Rs 29.23 crore for the quarter ended September 30, 2007. Total Income also declined to Rs 434.38 crore (Rs 460.84 crore).

A contrast

REI Agro’s relisting is in contrast to that of other relistings earlier this year.

In May, KGN Industries and Sylph Technologies soared on relisting. KGN Industries shot up by Rs 55,000 and Sylph by Rs 800.

Later in June, the BSE fined 200 brokers and traders up to Rs 5 lakh each for speculative trading in these scrips.