Rights issue plan powers ECE Industries

 ECE Industries soared 11.83% to Rs 189.50 at 10:37 IST on BSE, on proposal to raise funds by way of a rights issue.

Meanwhile, the BSE Sensex was up 126.66 points, or 1.24%, to 10,349.75.

On BSE, two shares were traded in the counter. The stock had an average daily volume of 2,190 shares in the past one quarter.

The stock hit a high of Rs 189.50 and a low of Rs 140 so far during the day. The stock has a 52-week high of Rs 915 on 29 October 2007 and a 52-week low of Rs 133 on 17 October 2008.

The small-cap stock had underperformed the market over the past one month till 20 October 2008, declining 32.02% as compared to the Sensex's decline of 27.20%. It had also underperformed the market in the past one quarter, declining 25.29% as compared to the Sensex's decline of 25.03%.

The company's current equity is Rs 4.39 crore. Face value per share is Rs 10.

The current price of Rs 189.50 discounts the company's Q1 June 2008 annualized EPS of Rs 4.46, by a PE multiple of 42.49.

ECE Industries' board will meet on 31 October 2008 to consider issue of equity share on right basis. The company made this announcement after trading hours on Monday, 20 October 2008.

ECE Industries' net profit fell 84.30% to Rs 0.49 crore on 1.1% fall in net sales to Rs 39.44 crore in Q1 June 2008 over Q1 June 2007.

The company is engaged in manufacturing equipment for power transmission and distribution, which includes transformers, switchgears and meters. It also operates in contract division, which carries out contracts of railways electrification and road construction. It also manufactures equipments or components of elevators for execution of jobs for erection and installation.