JMC Projects jumps on rights offering

JMC Projects jumps on rights offering

JMC Projects India spurted 5% to Rs 131.85on announcement of their decision to issue around 46.46 lakh equity share of Rs 10 at Rs 100 per share.

At the current market price of Rs 131.85, the offer price of Rs 100 stands at a discount of Rs 31.85.

As many as 27,322 shares were traded on the BSE. There were pending buy orders for 23,002 shares at the maximum price

The stock witnessed a pre-results rally from Rs 92.70 on 28 July 2006, to Rs 103.60 by 02 August 2006 in anticipation of strong results from the company. Here, the stock advanced to Rs 136.30 by 14 August, only to slip to Rs 125.60 by 4 September on profit-booking.

At the current market price of Rs 131.85, JMC Projects trades at 16.44 times its Q1 June annualized EPS of Rs 8.02.

JMC Projects India has decided to issue 46,46,550 equity shares of Rs 10 each, at a premium of Rs 90 per share (offer price Rs 100 per share), aggregating to around Rs 46.46 crore in the ratio of 2 shares for every 5 shares held on the record date.

In March, JMC Projects bagged an order for rehabilitation and straightening of Badnawar-Thandla in MP (Road 21) totaling $ 9.95 million (Rs 44.13 crore), from the Ministry of Rural Development Controller of Aid Accounts and Audit. Of the total amount, $ 5.99 million is being financed by Asian Development Bank.

JMC Projects is a leading player in civil construction of buildings and industrial structures and infrastructure projects such as roads and bridges.

Kalpataru Power Transmission holds 49.90% stake in JMC Projects. The latest paid-up equity share capital of the company is Rs 11.63 crore.

JMC Projects reported turnaround results for the Q1 June 2006. It posted a net profit of Rs 2.33 crore for the Q1 June 2006, compared to a net loss of Rs 1.21 crore for the Q1 June 2005. Net sales rose 45.20% to Rs 82.61 crore (Rs 56.89 crore).

 

Source: Capitalmarket