Thanks to the Italian eye-wear major's, Luxottica, likely open offer in Bausch & Lomb (India) (BLI), some of the investors have cashed in on the profit-booking opportunity. With the expectation of an attractive open offer price coupled with the stock being shifted to group A, operators have taken the stock to a high of Rs 187. The stock touched the 187-level, a gain of almost 80 per cent in 23 trading sessions, on September 14 and a correction saw the stock falling to the current level of Rs 153 in five trading sessions.The spurt in price was followed by high volumes. The scrip started its northward journey from a low of Rs 104 on August 12 and touched a high of Rs 167 (volume 10.15 lakh shares). Some profit-booking saw the stock falling to Rs 149 and after touching this level, the scrip resumed its rally.
Luxottica is expected to announced an open offer to buy the shares held by public and institutions in B& L (India) following the worldwide purchase of Bausch Lomb Plc's sunglass business. The openoffer will be for at least 20 per cent of the shares held by the public. The Italian major will also buy B&L's entire stake of 44 per cent in BLI. Luxottica had struck an agreement to buy all the assets and liabilities of B& L India's sunglass business, including its popular brands, Ray Ban and Killer Loop.
Since Bausch & Lomb's rights issue for retiring high cost debt, the company has been performing well. For fiscal 1999, the company clocked a net profit of Rs 13.61 crore on a turnover of Rs 89.71 crore. The company's interest cost fell sharply from Rs 2.65 crore to Rs 28 lakh in fiscal 1999. For the first quarter of 1999-200, net profit was Rs 1.98 crore against a turnover of Rs 25.7 crore.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page