LT Overseas ends below its offer price

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LT Overseas ends below its offer price

LT Overseas, maker of Dawat brand of rice, closed just below its offer price of Rs 56 per share. It witnessed heavy selling pressure at higher levels.

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LT Overseas , which entered capital market with an IPO of 70,35,714 equity shares of Rs 10 each, opened with good momentum but failed to sustain that gains. The stock was trading below its offer price through the day as it witnessed profit booking at higher levels due to weak market conditions till the mid session. It did not even recover as the markets recovered in the late trade and finally closed just below the offer price of Rs 56 per share, with 1.78% discount.

On the BSE, the share finished at Rs 55, with volumes of 54,13,788 shares. It touched an intraday high of Rs 62.90 and an intraday low of Rs 51.

On the NSE, the share closed at Rs 52.30, with volumes of 51,73,941 shares. It touched an intraday high of Rs 61.95 and an intraday low of Rs 51.25.

It opened at Rs 60 on the bourses.

The company's business is of milling, processing, and marketing of rice and manufacturing of rice food products. It is also engaged in R&D of rice and rice food products. It has 21% volume share for basmati rice in India and also owns brands such as 'Dawat' and 'Heritage'.

In the FY06, the company's net sales rose 11% at Rs 400 crore versus Rs 360 crore. Its PAT was up 124% at Rs 11.1 crore from Rs 5 crore. The operating profit surged 32% at Rs 28.2 crore versus Rs 21.4 crore. The company's OPM stood at 7% versus 5.9%.

LT Overseas registered net sales at Rs 78.2 crore in the Q1FY07. The net profit stood at Rs 2.6 crore. The operating profit posted at Rs 8.3 crore. The OPM was at 10.6%.