Prakash Industries up 13% after Rakesh Jhunjhunwala buys 10 lakh shares via block deals
Prakash Industries announced the demerger scheme between the company and Prakash Pipes today.
August 24, 2017 / 05:45 PM IST
Investor Rakesh Jhunjhunwala poses for a picture at a balcony overlooking Mumbai's financial district June 8, 2012. India's best known stock investor, billionaire Jhunjhunwala, doesn't much like the moniker of 'India's Warren Buffett'. Much like the famed Omaha investor, Jhunjhunwala has made a fortune from some savvy investments - Forbes magazine puts his net worth at $1.1 billion, ranking him 41st on India's rich list - but the similarities end there. Picture taken June 8, 2012. Image: REUTERS
Prakash Industries rallied 12.84 percent to close at Rs 125.25 on Thursday after buying a stake in the company by ace investor Rakesh Jhunjhunwala.
"The big bull Rakesh Jhunjhunwala picked up nearly 10 lakh shares of the company in open market via block deals," The Economic Times said in a report.
Meanwhile, Prakash Industries announced the demerger scheme between the company and Prakash Pipes today.
After demerger, the shareholding pattern of Prakash Pipes will be exactly the same as that of Prakash Industries.
Equity shareholders of Prakash Industries will get one share of Prakash Pipes for every eight shares held in the company.
The company has three major verticals - steel, power and PVC pipes. "The focussed approach in PVC pipes business shall enable it to achieve benefits of the growth trajectory and will unlock potential value of PVC pipe business for shareholders," it said.
The board of directors also approved the issue of new foreign currency convertible bonds towards outstanding cash consideration/obligation of USD 17.85 million to holders of 5.35% September 2020 bonds.
The board gave an approval for raising of funds up to Rs 500 crore in one or more tranches by issue of equity shares through qualified institutional placement.
They also approved calling of an extra-ordinary general meeting on September 23, 2017.