BSE, NSE record 1.36-crore shares each
Kolkata, Nov. 6
Shyam Telecom got re-listed today after business restructuring as a pure telecom equipment counter. The stock attracted traded quantity of 1.36-crore shares on the BSE and 1.37-crore shares on the NSE. Based on new business valuation, the stock witnessed a fresh price discovery.
It opened at Rs 72.60, raced to the day's high at Rs 148 before closing at Rs 137.40, posting a gain of 127 per cent against the previous closing of Rs 60.
The stock went off-trading from July 21. Notably, the average combined daily traded volumes on the NSE and BSE in the preceding week were over 3 lakh shares
The restructuring saw the telecom and transmission equipment business of erstwhile Shyam Telecom Manufacturing Ltd (STML), then a wholly owned unlisted subsidiary of Shyam Telecom Ltd (STL), being merged with it.
The business reorganisation also saw transfer of liabilities of the amalgamated company of Rs 200 crore to Shyam Basic Infrastructure Projects Pvt Ltd. This company has been given a consideration of equity stake in Shyam Telelinks, another unlisted subsidiary, which would be listed separately in December 2006. This proposed entity will have telecom services business; primarily it would become the unified services operator in Rajasthan.
The restructuring scheme effected a complete ownership separation. The STML shareholders are issued 794 of equity shares of Shyam Telelink Ltd and 35 equity shares of Shyam Telecom for every 100 equity share held in the un-amalgamated STL.
Shyam Telecom, earlier, had Rs 75 crore as the authorised capital with paid-up capital of Rs 32.20 crore, in which the promoters' holding was 66 per cent and the balance 34 per cent was with the public. As per the amalgamation scheme, STL share capital and reserves have reduced, with authorised capital remaining unchanged at Rs 75.00 crore.
The paid-up capital has now come down of Rs 11.27 crore. The scheme, however, kept the shareholding pattern intact.
Authorised capital of Shyam Telelinks is planned to be Rs 800 crore and the paid up capital will be Rs 455.95 crore. The promoters would hold 75 per cent of the new company whereas the public holding would be 25 per cent.
According to Mr M. Khumbhat, Director of STL, the restructuring is designed to bring about savings on cost of management and operations and attract strategic investors.