JK Tyre & Industries slipped 4.52% to Rs 94 at 15:30 IST on BSE after the company's board approved a 1:3 rights issue priced at Rs 85 per share including premium of Rs 75 per share.
The company made this announcement during trading hours today,
The stock hit a high of Rs 102.70 and a low of Rs 92 so far during the day. The stock had a 52-week high of Rs 195 on
The company has an equity capital of Rs 30.79 crore. Face value per share is Rs 10.
The current price of Rs 94 discounts its Q2 March 2008 annualised EPS of Rs 29.91, by a
PE multiple of 3.14.
The stock was hammered on concerns about massive equity dilution as a result of the right issue. The right issue will result in a 33% dilution in equity of the company.
On
JK Tyre & Industries’ net profit rose 67.40% to Rs 23.02 crore on 11.10% increase in net sales to Rs 829.96 crore in Q2 March 2008 over Q2 March 2007.
The company is engaged in designing, developing, manufacturing, distributing and servicing of conventional and radial tyres, tubes and flaps. It manufactures truck and bus radials, steel radials for cars, light commercial vehicle (LCV), truck and bus. Radial brands of the group include Ultima and Rally.
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