Jai Corp shares gain on merger of promoter company Pet Fibres with Mega Pipes

Over the past 3 months, shares of Jai Corp have surged over 30 percent

Shares of Jai Corp, a steel-to-spinning yarn manufacturer, gained by over a percent to Rs 393 apiece on August 27 after the NCLT approved merger of promoter company Pet Fibres with Mega Pipes.

With this merger, shares of Pet Fibres, which holds 2 lakh equity shares or 0.1 percent stake in Jai Corp will be transferred to reflect the new entity - Mega Pipes.

The exchange filing mentions that the company needs to update or transfer  Depository Participant (DP) account details due to the merger. Shares currently held in Pet Fibre’s DP account with ILFS (Infrastructure Leasing & Financial Services) will now be transferred to Mega Pipes’s DP account with MOSL (Motilal Oswal Securities).

Incorporated in 1985, Jai Corp is primarily into manufacturing businesses like steel, plastic processing and spinning yarn. Apart from the expansion of its plastic processing business, it is now focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital and real estate.

ALSO READ: Jai Corp Consolidated June 2024 Net Sales at Rs 120.92 crore, up 4.65% Y-o-Y

In the recently concluded June quarter, Jai Corp's revenue grew by 4.56 percent year-on-year (YoY), while profit surged by 148 percent YoY. However, sequentially, both revenue and profit declined by 1.4 percent and 41 percent, respectively.

Despite that, the company's earnings per share (EPS) for Q1 reached Rs 0.77, marking a strong 146 percent rise compared to the year-ago period.

The board will now meet on August 29 to consider a potential buyback of the company's equity shares. The meeting agenda will be to discuss the potential repurchase of fully paid-up equity shares with a face value of Re 1 each, as per the exchange filing.

Over the past 3 months, shares of Jai Corp have surged over 30 percent, significantly outperforming benchmark Nifty 50's 9 percent surge. Earlier, it had hit 52-week high of Rs 438 apiece on July 2, 2024, and 52-week low of Rs 203 on September 20, 2023.

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