CorporateFalcon Tyres zooms 256% post open offer
Falcon Tyres has more than tripled in little over a month, post closure of its open offer. The stock has zoomed significantly from Rs 149 on 10 June to Rs 531 today.
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The Singapore-based Wealth Sea owners of DIL Rim & Wheel Corporation, the holding company of Falcon Tyres made an open offer at Rs 151.71 per share. During the open offer period from 20 May to 10 June the stock moved in the range of Rs 146-156.
However, soon after the offer was over the stock made a spectacular climb as it surged around 256% to Rs 531 till date, up another 5% today. Out of 29 trading sessions, the stock has ended at its 5% upper circuit limit on 21 days. Only 716 shares were traded on the counter at the BSE today.
Wealth Sea held 74.82% stake in the company, and further acquired 11.6% of the shares in its open offer for 20% stake.
For the quarter ended March 2009, the company posted a nine-fold jump in net profit to Rs 5.42 crore as compared to Rs 0.61 crore in the corresponding quarter a year ago.