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Jayanta Mallick

Kolkata , Sept. 5

Mefcom Agro counter is seeing huge volume and price surge on the BSE after the company proposed to change the line of business. The loss-making company's stock moved up on Tuesday by around 5 per cent to Rs 16.06 as 1.97 lakh shares changed hands on the BSE. In the last one week, the stock has moved up 27 per cent and, in the past one month, by 74 per cent.

The company has informed the stock exchange that it is moving over to real estate development and urban infrastructure business and the board has proposed name change also.

According to market sources, the company is also seeing a management changeover through change of promoters.

Postal ballot

New promoters seeking the shareholders' approval have already opted for a postal ballot. The company sources told Business Line that the last date for receiving the postal ballot is September 17. The company is holding AGM on September 20, where shareholders' nod has been sought for appointment of one of the new promoters as an additional director.

The new promoters are understood to have begun acquisition from the market and target to buy up 26 per cent stake in the company by the end of this calendar year.

The market purchases are being done under the regulation 12 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, which would not require an open offer, market sources said.

To fund the new activities, the new promoters would bring in around Rs 25 crore in the form of additional equity through preferential allotment.

Mefcom has an accumulated loss of Rs 2.36 crore and a paid-up equity of Rs 2.83 crore, of which the existing promoters had 49.49 per cent stake and 45.19 per cent by retail investors.

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