MAHARAJA SHREE UMAID MILLS
This Rajasthan based company, belonging to the LN Bangur group manufactures cotton yarn and dyed fabric. The stock has been extremely volatile over the past few days as the delisting offer price date comes closer. The company plans to delist its stock, setting a floor price of Rs.65/share. The offer opened on 19th Dec and will end on 26th Dec. The promoters want to buy back 25.19% stake. Naturally, if the discovered price is more than the floor price, the delisting might not happen. The stock price is currently hovering around Rs.75-78.
The company ended Q2Fy15 with a net loss of Rs.3.5 crore v/s net profit of Rs.7 crore in Q2FY14. In Q1FY15 too, the company was in the red with a loss of Rs.3 crore. Despite a 18% (YoY) rise in net sales at Rs.129 crore, the huge operating costs – led by raw material, employee costs and power and fuel pushed the company into the red.
The big attraction in the company is the large pocket of surplus land which it holds – at Pali, 69 acres and 50 acres at Kota. The company plans to develop the land for residential and commercial purposes. If one may recollect, it had sold land in Jaipur and earned Rs. 150 crore and it also sold 21.65% stake in AP Paper.