Bright Star Investments buys stake in Andhra Paper

Andhra Paper share price added more than 17% today after Radhakishan Damani-owned Bright Star Investments on June 26 acquired 1.25% equity stake in Andhra Paper via open market transactions. It has bought 5 lakh shares in the company at Rs 206.23 per share.
While Nimi Enterprises sold 246,534 shares at an average price of Rs 210.69 per share, the name of the other sellers were not ascertained immediately.
The stock of the West Coast Paper Mills, one of the promoters of Andhra Paper, soared 12% to Rs 201.80 in the intra-day trade on the NSE today.

Last week, International Paper has offloaded 10% of its stake in Andhra Paper through an offer for sale (OFS) route. The floor price for the same was set at Rs 186 per share, at 12% discount to current market price. The promoters will raise Rs 74 crore from the OFS issue.
The Luxembourg-based company had a 20% stake in Andhra Paper at the end of March 2020 quarter, the shareholding pattern data shows.

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.
EPS has increased to Rs 23.37 in March 2020 from Rs 15.06 in March 2019.

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