Nava Bharat Ventures shares surged over 6 per cent on Thursday after the company entered into a sale and purchase agreement to sell 100 per cent equity stake in Nava Bharat Lao Energy (NBLE – wholly owned subsidiary of NBS) and thereby its 70 per cent equity stake in Namphak Power Company, which has been developing the 150 MW hydro power project in Lao PDR, in two tranches. The board of directors at its meeting held on August 24, 2016 approved the same. The company also announced its first quarter results and registered a 32 per cent drop in consolidated net profit to Rs 29.20 crore for the quarter ended June 30,as against Rs 42.98 crore in the corresponding quarter of the previous fiscal.
At 1.25 pm, Nava Bharat Ventures shares were trading 2.69 per cent up at Rs 245.80. The scrip opened at Rs 242.40 and has touched a high and low of Rs 254.50 and Rs. 239.25 respectively in trade so far. Later, the scrip ended 2.63 per cent up at Rs 245.65.
The promoters holding in the company stood at 44.31 per cent, while Institutions and Non-Institutions held 26.58 per cent and 27.54 per cent respectively.
“First tranche of sale for majority equity stake of NBLE has been concluded by NBS and the second tranche for the balance stake would be concluded subject to certain conditions in due course. The transaction upon consummation, is profitable and following that NBLE and thereby NPCL will cease to be subsidiaries of NBS/ Nava Bharat Ventures,” the company said in a BSE filing.
Company’s net sales during the quarter under review declined to Rs 313.72 crore from Rs 345.96 crore in the corresponding quarter of the previous fiscal.