Shares of this micro-cap stock jumped more than 6 percent in Tuesday’s trading session after the company’s Board of Directors approved the acquisition of a controlling stake in a UK-based company.
With a market capitalization of Rs 115.67 crores, the stocks of Mysore Petro Chemicals Limited started their trading session on Tuesday at Rs 169.80 and currently trade at Rs 175.70, gaining around 6.50 percent as compared to the previous closing levels of Rs 165.10 apiece.
Such movements in the stock prices of the company were observed after an exchange filing intimating that the Board of Directors of Mysore Petro Chemicals Limited approved the acquisition of a controlling stake, i.e., 80 percent, in “Q C Polymer Limited”.
Incorporated in the United Kingdom, Q C Polymer Limited is a private limited company that is engaged in the business of manufacturing recycled PET flakes (rPET) used in food packaging, textiles polyester, and straps.
Mysore Petro Chemicals will buy an equity stake in the UK-based company by subscribing to 3,200 shares of the face value of GBP 1 each at a premium of GBP 280 each. Moreover, the company will infuse debt of up to GBP 2 million to meet the operational requirements of the target entity.
The consideration for the abovementioned transaction is decided to be a ‘cash’ one and, the period to execute the same is three to six months. During the recent financial quarters, the company reported opposing movements as far as the operating revenues and after-tax profits are concerned.
The former, on one end, moved up from breakeven levels during Q1FY23-24 to Rs 7 crores during Q2FY23-24, and the latter, on the other end, went down from Rs 5 crores to Rs 2 crores keeping the timeframe the same.
Incorporated in 1969, Mysore Petro Chemicals Limited is engaged in the trading of petrochemical products in India. The company trades in petrochemical products, some of which include phthalic anhydride, orthoxylene, maleic anhydride, etc.
Written by Amit Madnani
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