The stock of wood and paper manufacturers hit the 5 percent upper circuit on Wednesday after the company got sanctioned by the Honourable National Company Tribunal (NCLT) for amalgamation with Greenlam Industries.
With a market capitalization of Rs. 93.99 cr, the share of HG Industries Ltd hit a 5 percent upper circuit at Rs. 212.40 apiece within a few minutes of the opening bell.
In an exchange filing, the company mentioned that the meetings of equity shareholders and unsecured creditors of the HG Industries were held on April 17, 2023, and the equity shareholders and unsecured creditors of the Greenlam Industries were held on April 21, 2023.
The respective equity shareholders and unsecured creditors of both companies approved the Scheme with the requisite majority. Subsequently, both the companies jointly filed a petition with the Tribunal for sanction of the Scheme.
The company, furthermore, gave an update that the Honourable National Company Tribunal (NCLT) has passed the order sanctioning the amalgamation of both companies.
Digging into the financial statements of HG Industries, the revenue accelerated from Rs. 73 lakhs during Q1 FY24 to Rs. 11.66 cr in Q2 FY24. On a contrasting note, the net loss of the company increased from Rs. 2.2 cr to Rs. 8.27 cr keeping the timeframe the same.
Looking at the important ratios, the return on equity (RoE) drastically increased from -0.15 percent during FY21-22 to 1.54 percent during FY22 -23. In addition to this, the return on capital employed (RoCE) magnified from -0.51 percent to 3.4 percent during the same period. The company has a ‘zero’ debt to equity ratio which means the company hasn’t relied on borrowings to finance its operations.
According to the latest shareholding pattern, Promoters have a 74.91 percent stake in the company, and the remaining 25.09 percent is held by Retail Investors.
HG Industries was established in the year 1987. The company manufactures, markets, and trades wooden and paper-based products including plywood, laminates, veneers, medium-density fibreboard, high-density fibreboard, wooden doors, flooring, and windows.
Written By Vaibhav Patil
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