Man Industries consistently in green
Man Industries has been doing very well for the past two days. Today too, the stock is up almost 2,.5% at Rs.71.25, with an intra day high at Rs.74.Volumes are huge at 5.5 lakh shares being traded today morning compared to 22,000 shares traded over past two weeks average.
The stock has been up since the company announced on 15th Sept that the company stated at its Board meeting that it has approved a scheme of arrangement involving its saw pipe business and realty and infra business.
The company has issued a Press Release stating that its Board has observed that the Pipe business and Real Estate Construction/Development business have tremendous growth and profitability potential and therefore both the business activities require focused leadership and management attention. The nature of risk and competition involved in the demerged business is distinct from pipe business. In a scheme of arrangement, shareholders of Man Industries will be entitled to free issue of for every one fully paid-up equity share of Rs 5 each held by the equity shareholders in Man Industries, one fully paid-up equity share of Rs 5 each of Man Infraprojects will be given, which will be a listed entity.
The company has stated that it is confident that the demerger will enhance value of its shareholders, and provide fresh momentum for growth in the both the business verticals. The proposed demerger will allow the Group to improve performance significantly by capitalizing the opportunities.