Orissa Minerals Development Corporation crashed 10 per cent on Friday after the company board decided against the bonus issue.
Orissa Minerals plunged Rs 5,320.75 or 10 per cent to Rs 47,887.25 from Rs 53,208.
This is the first time the company's board has decisively said it is not in favour of bonus issue. Earlier, the company postponed its September 3 board meeting that was supposed to consider bonus and stock split “due to some unavoidable circumstances”.
That meeting was rescheduled again to September 13.
The stock has been volatile as the company has been indicating bonus and stock split plans every now and then but deferring it due one or the other reason.
Similarly, earlier on August 11 and on August 8, the board had the agenda of bonus and stock split, but kept deferring it to future dates. The company had plans to the increase its authorised capital from Rs 60 lakh to Rs 25 crore.
Promoters hold 50.01 per cent stake in the company, while LIC holds 15.42 per cent.
The company reported a net profit of Rs 2.8 crore on a revenue of Rs 3.53 crore for the June quarter.
During the 52-week period, it touched a low of Rs 25,550 (June 4) and high of Rs 60,392.25 (August 7).