Wednesday, November 5, 2008

Compact Disc India spurts on issue of equity warrants at huge premium

Compact Disc India galloped 5.52% to Rs 44 at 15:14 IST on BSE after the company said it would issue convertible warrants at Rs 100 each, a 127% premium over the ruling market price.
The stock hit a high of Rs 45.50 and a low of Rs 40 so far during the day. The stock had a 52-week high of Rs 130.95 on 18 January 2008 and a 52-week low of Rs 25.70 on 27 October 2008.
The small-cap animation outsourcing services provider has an equity capital of Rs 9.57 crore. Face value per share is Rs 10.
The current price of Rs 44 discounts its Q2 September 2008 annualised EPS of Rs 37.99, by a PE multiple of 1.15.
The board of Compact Disc approved issuing 28 lakh convertible warrants at Rs 100 on preferential basis to non-promoters. Each Warrant will be convertible into one equity share of Rs 10 each of the Company at a premium of Rs 90 at the option of the warrant holders, at any time within a period of 18 months from the date of allotment of warrant.
Compact Disc India’s net profit surged 114.9% to Rs 9.09 crore on a 119.3% rise in sales to Rs 46.68 crore in Q2 September 2008 over Q2 September 2008.
Compact Disc India offers animation outsourcing services. The company produces animated entertainment for movie theaters and television.

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