Excellent day for SEL Mfg, closes with 82% premium

SEL Manufacturi BSE | NSE 13/02/12 Are Mutual Funds betting on SEL Manufacturi?

It was a big day for SEL Manufacturing Company , which started the day on weak note at Rs 87.90 on the BSE, with discount to its issue price of Rs 90  and also touched a low of Rs 80 on the back of selling pressure in the beginning trade. But management outlook for FY08 and FY09, which are above market expectations, has given strong support to the stock and due to that it surged 92% during intraday trade at Rs 173.

In an interview with CNBC-TV18, Neeraj Saluja , MD, SEL Manufacturing said that he sees FY08 topline at Rs 380 crore (while expectations were of Rs 250 crore) and profits at Rs 37 crore. While, FY09 topline is seen at Rs 580 crore and profits at Rs 58-59 crore. FY08 EPS is seen at Rs 23-24.

The stock has ended at Rs 164, up 82.22%, with volumes of 2,53,76,464 shares on the NSE. The turnover was at Rs 315.25 crore.

On the BSE, the share ended at Rs 142.80, with volumes of 26924299 shares. It has touched an intraday high/low of Rs 157.50 and Rs 80, respectively.

"50% of the topline comes from garment and the balance is shared between yarn and fabric. So we would be maintaining the sales level as the growth is happening in all the three sectors", mangement said.

The company had entered capital markets with an initial public offering (IPO) of 41,38,410 equity shares of Rs 10 each through 100 per cent book-building process at a price band between Rs 80 and Rs 90 per equity share and raised Rs 37.25 crore at Rs 90, higher end of the price band.