Aksh Optifibre restructuring buzz

Aksh Optifibre rose 4.89% to Rs 48.30 at 15:23 IST on BSE on reports the company is considering a proposal for separating its manufacturing and services operations into two entities.

The stock hit a high of Rs 48.20 and a low of Rs 46.50 so far during the day. The stock had a 52-week high of Rs 96 on 3 January 2008 and the stock hit a 52-week low of Rs 36 on 23 August 2007.

The company’s current equity is Rs 28.78 crore. Face value per share is Rs 5.

The company reported a net loss of Rs 2.68 crore in Q2 March 2008 as compared to a net loss of Rs 0.15 crore in Q2 March 2007. The company’s sales rose 246.1% to Rs 42.88 crore in Q2 March 2008 over Q2 March 2007.

The plan to split the company into two is still at a preliminary stage and it is yet to be discussed at the board level. The board is expected to take a decision within a month. The idea behind the proposed split was to have two independently focussed companies and to unlock value for shareholders and allow investors to make a choice between manufacturing and services. The company's growth had led to two businesses which were diverse in nature.

Aksh Optifibre produces variety of cables such as single-mode, multi-mode, duct, armoured, aerial, indoor and outdoor. It also has facilities to produce ribbon fibre optic cables.