Wednesday, December 24, 2008

Woes Continue For Pyramid Saimira Equity Reports Of The Open Offer - Dec 24, 2008

The Securities & Exchange Board of India (Sebi) made the clarification after trading hours on Tuesday, 23 December 2008.Meanwhile, the BSE Sensex was down 77.77 points, or 0.80%, to 9607.29On BSE, 22602 shares were traded in the counter, with pending sell orders of 98922 at lower limit. The scrip had an average daily volume of 2.26 lakh shares in the past one quarter.The stock hit a high and low of Rs 55.05 so far during the day.

The stock had a 52-week high of Rs 551 on 31 December 2007 and a 52-week low of Rs 35.30 on 2 December 2008.The stock had outperformed the market over the past one month till 23 December 2008, advancing 43.88% as compared to the Sensex's return of 8.65%. However it underperformed the market in the past one quarter, plunging 46.78% as compared to the Sensex's decline of 28.62%.

The small-cap theatre chain operator has an equity capital of Rs 28.28 crore. Face value per share is Rs 10.The current price of Rs 55.05 discounts its Q2 September 2008 annualised EPS of Rs 12.31, by a PE multiple of 4.47.

On its part, Pyramid Saimira Theatre (PSTL) has request the stock exchanges for an investigation to a forged letter it received from Sebi asking its chairman and promoter P S Saminathan to file prospectus for public announcement for open offer to acquire 20% of shareholding within 14 days at a price of Rs 250 per share, at a price 3.5 times the ruling market price. Press reports on 22 December 2008 had suggested that the Sebi vide its order dated 19 December 2008 has asked P S Saminathan, chairman and promoter of PSTL, to acquire additional 20% at a minimum price of Rs 250 per share for violating share purchase rules.

The company is also planning to launch a formal complaint with Central Bureau of Investigation (CBI) in this regard. Sebi on Tuesday said it was investing the matter and also said it is inquiring into the dealings in the scrip following press reports of the open offer.

The stock had ended 10% down at Rs 67.90 on Monday, 22 December 2008, reversing an intraday 10% rise after the company said it had not received any communication from the stock market regulator regarding an open offer. The company had also announced that Saminathan had informed the company that he did not receive any communication from Sebi regarding an open offer. The stock had plunged on huge volume of 32 lakh shares on BSE on that day, much higher than average daily volumes in the counter. It was again locked at the 10% lower circuit at Rs 61.15 on Tuesday.

Pyramid Saimira Theatre's net profit fell 42.4% to Rs 8.70 crore on a 74.9% rise in sales to Rs 252.26 crore in Q2 September 2008 over Q2 September 2007.Pyramid Saimira Theatre is focused on distribution and exhibition of films. Its objective is to have presence in all categories of theatres including malls, multiplexes, cineplexes and standalones across the country in tier I, II and III locations.

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