Rich brew for Andrew Yule & Company on restructuring plan
Andrew Yule & Company was locked at upper limit of 5% at Rs 64.70 at 11:39 IST on BSE on reports the company is planning to rejig its various businesses.
The BSE Sensex was up 122.15 points, or 0.64%, to 19214.93.
On BSE, 2.56 lakh shares of the scrip were traded. The stock had an average daily volume of 55,377 shares on BSE in past one quarter.
The scrip had touched a low of Rs 63.70 so far during the day. The stock had hit a 52-week high of Rs 82.70 on 12 December 2007 and a 52-week low of Rs 20.15 on 14 March 2007.
The scrip had underperformed the market in the one month to 19 December 2007, sliding 10.65% as against the Sensex's 0.98% decline. It had, however, outperformed the market in the past three months, soaring 45.74% against the Sensex's 16.79% rise.
The state-run diversified firm has an equity capital of Rs 58.27 crore. Face value per share is Rs 10. |
As per reports, Andrew Yule & Company (AYCL) has decided to spin off its electrical and engineering divisions into two separate companies — Yule Electrical and Yule Engineering, respectively. AYCL will continue only with its tea business. The new corporate structure will be effective from 1 April 2008.
Besides this, the company will reportedly unlock its investments in Phoenix Yule, Tide Water Oil Co (I) and DPSC — the erstwhile Dishergarh Power Supply Corporation — to reduce accumulated losses.
Currently the government of India holds 93.26% of the equity of AYCL with the balance being held by the public and financial institutions.
Andrew Yule & Company reported a loss of Rs 12.82 crore in Q2 September 2007 as against net loss of Rs 9.66 crore in Q2 September 2006. Sales rose 22.6% to Rs 47.65 crore in Q2 September 2007 over Q2 September 2006.
Government of India holds 93.26% stake in undertaking in AYCL. Andrew Yule has three divisions - tea, engineering and electrical equipment.