Empee Distilleries gets a hangover

Last week, on 21st Dec to be more precise, Empee Distilleries had risen some 6% on news that th Board was meeting on the 26th of Dec to consider and approve sale of 1,95,12,997 equity shares of Rs. 10/- each held by the Company in Empee Hotels Limited (Unlisted entity).

It is meeting to also amend/ratify/ modify certain clauses in the EGM Notice/Explanatory Statement dated October 27, 2016 (duly passed by Shareholders) to allot 9,39,727 Equity Share Warrants to EW India Special Assets Fund Pte Ltd and 2,27,133 Equity Share Warrants to Edelcap Securities Ltd @ Rs. 64.54 per warrant (price as determined on relevant date i.e. 28/10/2016); on preferential basis.

Well, the Board meeting happened yesterday and the Board decided to not go ahead with the sale of its stake in Empee Hotels.

The Board approved the issue of warrants on preferential basis and will be holding an EGM on 19th Jan instead of a postal ballot to get shareholders approval for the same.

The stock price is in the red today, going down almost 2% to Rs.50.35 and recovered after that; this means the disappointment is not as high as expected as the fall is much smaller than the rise.