Kohinoor Foods cooks well

Kohinoor Foods had closed at Rs.38.40 on Friday and today, it opened at Rs.42.05 and zoomed up 205 at Rs.46.05, a new high and hitting the upper circuit. Volumes are up over 8 times, with over 56,000 pending buy orders on the counter.

The stock has hit the roof on news that it plans to see 20% out of its 25% stake in its Dubai JV, Rich Rice Raisers Factory at Rs.160/share to an Abu Dhabi based agri company, Al Dahra.

The company though clarified today that it does not plan to sell 20% stake in the JV but is issuing 20% stake in Kohinoor Foods to the Abu Dhabi company at a huge premium to the market price, at Rs.160/share, meaning around Rs.120 crore will come into the company. This money will add to the books of Kohinoor and will be used as additional working capital in the company.