Open offer at huge premium fuels Sah Petroleums
The company made the announcement during market hours yesterday, 20 October 2008, when the stock rose 20% to Rs 14.40.
Meanwhile, the BSE Sensex was up 473.87 points, or 4.85%, to 10719.36.
OnThe stock had a 52-week high of Rs 29.30 on 3 January 2008 and a 52-week low of Rs 8 on 10 October 2008.
The stock had outperformed the market over the past one month till 20 October 2008, rising 7.54% as compared to the Sensex's decline of 27.20%. It had also outperformed the market in the past one quarter, gaining 5.19% as compared to the Sensex's decline of 25.03%.
The small-cap industrial lubricants maker has an equity capital of Rs 16 crore. Face value per share is Rs 5.
The current price of Rs 17.28 discounts its Q1 June 2008 annualised EPS of Rs 4.56, by a PE multiple of 3.78.
NAF India Holdings during trading hours on Monday, 20 October 2008, announced an open offer to acquire 27.5% additional stake at Rs 48.50 per share. The offer price was at a huge 304% premium over Friday's (17 October 2008)'s closing price of Rs 12 on BSE. The offer will remain open between 4 December 2008 and 24 December 2008.
The open offer was triggered after the company's board at the meeting held on 17 October 2008, approving issue of 1.20 crore equity shares of Rs 5 each to NAF India Holdings at a price of Rs 26.65 per equity share on preferential basis.
As per the Sebi takeover code, any acquirer who acquires 15% or more equity shares in a company, has to make a mandatory open offer of 20% of the equity share capital of the target company.
Sah Petroleums' net profit rose 21.7% to Rs 3.65 crore on a 36.6% rise in sales to Rs 60.31 crore in Q1 June 2008 over Q1 June 2007.
Sah Petroleums manufactures a wide range of specialty industrial lubricants, rubber processing oils, greases, automotive lubes and various grades of other oils