Almondz Global Securities moves

Almondz Global Securities had jumped 3.32% to Rs 87.20 at 12:04 IST on reports that the company may place 15% equity with prospective investors to raise funds for its expansion plans.

The BSE Sensex was up 10.44 points, or 0.07%, to 15553.21.

On BSE, 2.61 lakh shares of the scrip were traded. The stock had an average daily volume of 1.24 lakh shares on BSE in past one quarter.

The scrip had touched a high of Rs 89.75, all time high. It touched a low of Rs 84 so far during the day. The stock had hit a 52-week low of Rs 19.30 on 28 September 2006.

The scrip had outperformed the market in the one month to 11 September 2007, adding 20.06% as against the Sensex's 3.50% gain. It had also outperformed the market in the past three months, gaining 87.14% against the Sensex's 11% rise.

The small-cap merchant banker has an equity capital of Rs 9.60 crore. Face value per share is Rs 6.

At the current price of Rs 87.20, the scrip trades at a PE multiple of 15.43, based on Q1 June 2007 annualised EPS of Rs 5.65.

The company is reportedly in talks with private equity investors and the placement could be at a 10-15% premium to the current market price. Reportedly, the firm is planning to raise Rs 50-60 crore. The funds will be utilised for retail broking and margin funding.

As per reports, Almondz Group is currently in the process of merging the equity business of Almondz Capital Markets, a BSE member, with Almondz Global Securities (AGS). Shareholders of both the companies would meet separately to consider the proposal on 29 September 2007.

At the meeting held on 6 August 2007, the AGS board decided to make preferential allotment of 15,37,500 shares and warrants to promoters and other investors at Rs 80 including premium of Rs 74 per share, the report added.

AGS’ net profit rose 35.3% to Rs 2.26 crore on 64.8% rise in operating income to Rs 14.91 crore in Q1 June 2007 over Q1 June 2006.

Almondz Group provides a wide range of financial Services including merchant banking, infrastructure advisory, debt portfolio management, distribution of insurance products, equity and commodity broking.