Kirloskar Brothers relists with sharp gains

After capital reduction and transfer of investment assets, Kirloskar Brothers Ltd (KBL) resumed trading on Tuesday, pumped up gain and created its 52-week high at Rs 370 on the BSE and Rs 375 on the NSE. It closed at Rs 334.25, with a gain of 28 per cent on the BSE. The Rs 2 face-valued stock closed at Rs 261 on its previous trading session on March 8.

The trading had remained suspended from March 9 and the record date for a scheme of arrangement was March 10. Through the Bombay High Court approved scheme, total investments of the pump manufacturing company were transferred to a new entity called Kirloskar Brothers Investments (KBIL) and the paid-up equity capital of KBL was reduced to Rs 15.86 crore by allotment of 15 fresh equity shares of Rs 2 each for every 20 equity shares of Rs 2 each held on record date.

Further, for every such 15 equity shares so held by such a shareholder in KBL was allotted one share of the face value of Rs 10 of KBIL. The KBL stock at today's closing price stood improved over 5 times its 52-week low of Rs 66 on March 17, 2009. The KBL board will meet on April 26 to consider the audited financial results for the quarter ended March 2010 and recommendation of final dividend for FY10.

Source: Indiacar.com Source : Business Line (Online Edition) (4/20/2010)