There is no respite for paper maker Andhra Paper from the share price fall. Today, it witnessed close to 10% drop in share price ahead of the launch of offer for sale (OFS). The stock is more than halved as compared to its 52-week high.
Andhra Paper promoter, International Paper Investments, has decided to sell 39.7 lakh shares (10% equity) through an OFS. The floor price for the same is set at Rs 186 per share, which is at 12% discount to current market price.
Trade date for non-retail investors is June 25 and for retail investors, it is June 26.
The promoters will raise Rs 74 crore from the OFS issue.
Promoters hold 92.2% stake in the company as of March 2020. According to Securities and Exchanges Board of India (SEBI) listing guidelines, the promoters holding needs to be brought down to 75%.
Meanwhile, Andhra Paper boasts strong fundamentals. The company reported a 55.12% increase in its net profit to Rs 92.92 crore for the fourth quarter ended March 2020.
It had posted a net profit of Rs 59.90 crore in the January-March 2019 quarter
Its revenue from operations was down 25.49% to Rs 279.66 crore during the January-March 2020 period, against Rs 375.38 crore in the corresponding quarter a year ago.
Andhra Paper’s total expenses stood at Rs 234.42 crore as against Rs 285.45 crore, down 17.87%.
EBITDA stands at Rs 70.08 crore in March 2020 down 37.36% from Rs 111.88 crore in March 2019.
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EPS has increased to Rs 23.37 in March 2020 from Rs 15.06 in March 2019.