Hydro S&S falls over 10%

Hydro S&S has been down in the red since yesterday and today, it’s no different. In the morning trades, it slipped down below 10% to Rs.191 but has since then recovered though it remains deep in the red, currently down 8% at Rs.195.

The stock has slipped into the red after the company yesterday announced a floor price for the offer for sale at Rs.180/share, which is quite a discount to the market price. The offer for sale is to facilitate the promoters to meet the 75% maximum shareholding norm – they have diluted 7.8% stake and that has helped bring down their stake from 82.8% to 75%.

The company is a manufacturer and supplier of high quality Reinforced Polypropylene Compounds, Thermoplastics Elastomers and Fibre Re-Inforced composites. The company was taken over by Kingfa, a Chinese company in 2013. It had ended Q2 with a loss of Rs.1.5 crore and FY14 had ended with a net loss at Rs.8.5 crore.