Madras Aluminium reaches a summit

Madras Aluminium was locked at 20% upper limit of Rs 219 on BSE, after parent Vedanta said it will transfer the group's aluminium and energy businesses to the company.
The stock witnessed a roller coaster ride. It plunged as much as 19.72% to Rs 146.50 in early afternoon trade soon after the Vedanta group unveiled restructuring plan for the group.
Today’s high of Rs 219 is a lifetime high for the counter. The stock had hit 52-week low of Rs 85.47 on 25 March 2008
Volumes in the stock were huge. On BSE, 30.6 lakh shares changed hands in the counter. The stock had average daily volume of 5,705 shares in the last three months to 5 September 2008.
As per the restructuring plan, Sterlite Industries will demerge its aluminium and energy businesses to Madras Aluminium. Following the restructuring of the Vedanta group, Madras Aluminium will be renamed as Sterlite Aluminium. The company will reportedly invest Rs 75000 crore over three years to boost capacity.
Sterlite Industries shareholders would get seven shares in Madras Aluminium for every four shares held as part of a restructuring. Also as a part of the restructuring, shareholders of Madras Aluminium will get one equity share of Sterlite for every 51 equity shares held in the company. The latter is to compensate Madras Aluminium shareholders for cancellation of Madras Aluminium’s 3.61% stake in Sterlite.
Madras Aluminium’s net profit declined 41.3% to Rs 21.50 crore on 22.5% growth in net sales to Rs 136.03 crore in Q1 June 2008 over Q1 June 2007.
Madras Aluminium Company is engaged in the business of primary aluminum production.