Good time to pick K.S. Oils stock

Published: Tuesday, September 13, 2011, 15:20 [IST]

K S Oils stock surged 19% in day's trade after company informed BSE on Monday that it is supposed to raise upto Rs 250 crore by issuing convertible warrants or equity shares to its investors and promoters.

The company's stock was trading higher by 12.68% to Rs 12.44 at 1:20 pm IST on BSE.

The company also announced its approval from its shareholders to raise funds up to $150 million by issuing global depository receipts (GDRs) and will raise the authorized share capital from Rs 60 crore to Rs 90 crore.

KS Oils Limited is a leading Indian FMCG company in the edible oil market founded in 1985 by Ramesh Chang Garg. It owns thousands of acres of plantations, including the scenic Sumatra island in Indonesia.

The edible oil manufacturer which was worth more than 2,600 crore last year, is at 406 crore, after it went with massive trading bets in mustard oil seed, in which it was a leader with more than a tenth of the national market share.

It owns some of the big brands like Kalash Mustard Oil and Double Star Mustard Oil in mustard oil segments.

Recent media reports also say that the world's largest commodities trader Glencore International AG may bid for K S Oils, the news that drove stock further, though company has clarified informing BSE that it has not entered into any concrete agreement with any party for sale of its business so far.

View: K S Oils stock has already plunged to its lows, with now new doors opened up for the company, this is the good time to open a small position in stock.

GoodReturns.in

Story first published: Tuesday, September 13, 2011, 15:20 [IST]

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