MUMBAI (Commodity Online): Copper tubes and products maker, Nissan Copper Ltd (BOM:532789) lost ground on the Bombay Stock Exchange (BSE) after a promoter group company, Danial Investments pledged seven lakh shares representing 4.8% stake of the company.
The company made the announcement during trading hours today, 9 March 2010, while the BSE Sensex was down 23.75 points, or 0.14% to 17,078.85. The company stocks shed losses on the BSE and traded at Rs.41.50 with loss of over 1%. The stock hit a high of Rs.42.20 and a low of Rs.41.20 so far during the day.
The small-cap stock had outperformed the market over the past one quarter, surging 53.28% as compared to the Sensex's decline of 0.73%.
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The total promoter shareholding in the company is 54.42% (as on 31 December 2009). The issue of pledged shares has gained importance after it was discovered last year that the entire promoter stake of the fraud-hit Satyam Computers was pledged with various financial institutions. Securities & Exchange Board of India (SEBI) has since made it mandatory for companies to disclose details related to pledge shares.
There are fears that the lenders may dump the pledged shares if the promoters fail to repay the loan. Nissan Copper reported net profit of Rs.2.30 crore in Q3 December 2009 compared to net loss of Rs.7.34 crore in Q3 December 2008. Net sales surged 70.9% to Rs.43.22 crore in Q3 December 2009 over Q3 December 2008.
