Deepak Fertilizers to consider buy-back proposal

Capitalmarket.com - January 15, 2002

The company's board will meet on 21 Jan 2002

Deepak Fertilizers & Petrochemicals Corporation will hold a meeting of its board of directors on 21 January 2002 to consider a proposal for buy-back of shares of Rs 10 each.

Deepak Fertilisers is engaged in the manufacture of fertilisers and industrial chemicals. The company posted an 11.4% rise in the first half ended September 2001 sales to Rs 282.74 crore. Its profit before tax declined to Rs 27.50 crore from Rs 29.32 crore during the previous corresponding period. The two main businesses of the company have had contrasting fortunes of late - the fertiliser business being depressed while the industrial chemicals business performing well. The company has expressed interest in acquiring a majority stake in Steel Authority of India's (Sail) Rourkela fertiliser plant.

The company has a high equity base of Rs 88.63 crore and a buy-back could help in reducing the paid-up equity. The book value per share stood at Rs 44.20 as on 31 March 2001.

Deepak Fertilizers closed at Rs 18.45 on BSE today on volumes of 34,415 shares.

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