Arvind Chemicals at upper circuit in second straight session

Arvind Chemicals hit the buyer’s circuit for the second day in a row, at 5% to Rs 77.15, after the company set 19 March 2007 as record date for its bonus issue.A total of 2,237 shares got traded in the counter on BSE. There were pending buy orders for 10,392 shares at the maximum price.

The scrip of Arvind Chemicals had risen between late-September and early-November 2006. The scrip has slipped by late-December 2006. From a recent high of Rs 78.60 on 9 January 2007, it dropped to Rs 61 by 5 February 2007, only to rise to Rs 73.80 by 13 February 2007. The stock slipped again to close at Rs 66.70 by 15 February, from where, it has risen to Rs 73.50 by 22 February 2007.

Arvind Chemicals’ board, on 19 October 2006, recommended an issue of bonus shares in the ratio of two equity shares for every single equity share in the company.Further, Arvind Chemicals' board has allotted 3 lakh equity shares of Rs 10 each, at a premium of Rs 110 per share, to Sakal Holdings.

Arvind Chemicals manufactures polyurethane foam, which is extensively used in transport, automobile, packaging, electronics, garments, leather, shoes and furniture industries.

Arvind Chemicals posted a net profit of Rs 0.05 crore in Q1 December 2006 compared with a net loss of Rs 2.10 crore in Q3 December 2005. Net sales for the December 2006 quarter decreased to Rs 1.92 crore from Rs 10.73 crore.