Tuesday, December 23, 2008

Pyramid Saimira Theatre facing Fake SEBI Letter

Pyramid Saimira Theatre was locked at lower circuit limit of 10% at Rs 61.15 on BSE on reports the market regulator has not issued any advisory to the company's chairman regarding an open offer.
The stock hit a high of Rs 68.25 and a low of Rs 61.15 so far during the day. The stock had a 52-week high of Rs 551 on 31 December 2007 and a 52-week low of Rs 35.30 on 2 December 2008.
The small-cap theatre chain operator has an equity capital of Rs 28.28 crore. Face value per share is Rs 10.
The current price of Rs 61.15 discounts its Q2 September 2008 annualised EPS of Rs 12.31, by a PE multiple of 4.96.
The Securities Exchange Board of India (Sebi) is reported to have denied issuing any letter to Pyramid Saimira Theatres (PSTL) regarding an open offer as per the takeover regulations. The market regulator is said to be looking into the letter in circulation and reports suggest that it will issue a detailed press release later today 23 December 2008.
However, the company had confirmed during market hours today, 23 December 2008 that the stock market regulator had asked its chairman, P S Saminathan, to make an open offer to buy 20% in the company at Rs 250 a share. According to the company, the Sebi had asked Saminathan, to file documents for the open offer within 14 days.
Yesterday, 22 December 2008, media reports had suggested the Sebi vide its order dated 19 December 2008 had asked P S Saminathan to acquire additional 20% at a minimum price of Rs 250 per share for violating share purchase rules.
The stock had ended 10% down at Rs 67.90 yesterday, 22 December 2008, reversing an intraday 10% rise after the company said it had not received any communication from the stock market regulator regarding an open offer. The company had also announced that Saminathan had informed the company that he did not receive any communication from Sebi regarding an open offer. The stock had plunged on huge volume of 32 lakh shares on BSE, much higher than average daily volumes in the counter.
Pyramid Saimira Theatre's net profit fell 42.4% to Rs 8.70 crore on a 74.9% rise in sales to Rs 252.26 crore in Q2 September 2008 over Q2 September 2007.
Pyramid Saimira Theatre is focused on distribution and exhibition of films. Its objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in tier I, II and III locations.

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