The MD of Piramal Glass (PG),Vijay Shah, has invested nearly another Rs One Crore by picking up One lakh Shares of PG on June 25,2010 when the Price ranged between Rs 93 and Rs 98 that day…..He now holds 7.19 lakh shares in PG…0.89% of the Equity of 8.04 crs shares……Interesting increase in Exposure
PG has turned around and even declared a 10% dividend this year earning nearly Rs 16 crs on sales of Rs 671 crs…EPS of Rs 3 on weighted capital ,but just under Rs 2 on current equity of Rs 80.43 crs…Market Cap is under Rs 800 crs….Networth is Rs 401 crs with Equity at Rs 80.43 crs and Reserves at just over 320 crs
Now this is interesting…in August 2009,it had a rights issue in a liberal 7:2 ratio,raising Rs 189 crores by issuing 62.29 million shares at Rs 30,that’s at a Premium of Rs 20…the issue opened on August 26,2009 and closed on September 9,2009….The Share Price closed at cum rights on August 10,2009 at Rs 89…It opened the next day ex-rights at Rs 45….and remained in the range of Rs 35 to Rs 40 while the Issue was Open…The Equity moved up from Rs 17.98 crs to Rs 80.43 crs and Promoters Stake from 69.94% to 76.79%…this computes to Promoters subscribing and being alloted to an incremental 5.17 more million shares than entitled…this also means the Rights Issue was undersubscribed/rights renounced by 8.3% going by the entitlement in the ratio of 7:2….the Share Price has since surged inside ten months to near Rs 100 …that’s over 230 % gains over the Rights issue Price of Rs 30 !
Entitled Shareholders of PG who let go of the Rights last year surely must be cursing their luck and many must be looking for a Punching bag ! suspecting that the promoters downplayed the Turnaround and maintained the ex rights price range of Rs 35 to Rs 40 while the Issue was open,so there would be undersubscription and this would enable them to corner more shares in the Rights issue than entitlement ? ….Hmmm….
52 Week High/Low is Rs 110/Rs 28…..
Rewind to a little more than a month ago to May 2010….Economic Times had reported that the Piramal Group was in talks with Hindusthan National Glass to acquire Piramal Glass….PG denied this
Perhaps a coincidence that earlier in the month of May itself, the Group flagship,Piramal Healthcare had announced that they are selling their Domestic Formulations business to Abbott laboratoties for a whopping US $ 3.72 billion….Nine Times the Value of the Business !