Vascon Engineers declines due to cancellation of preferential allotment proposal

Vascon Engineers faced the fallout of the cancellation of their preferential allotment proposal on the bourses on June 12, 2017 as at 09:50 hrs IST, about 2,067,909 shares selling orders were pending, with no available buyers. 

The stock stood at Rs 45.45 in the early trade hours, locked at 20 per cent lower circuit on the Bombay Stock Exchange on Monday.
 
The company had proposed a preferential allotment of fully compulsorily convertible debentures to investors Manan Finserve Private, and Vinca Rosea Farms and Properties LLP in the month of April, 2017.  

While the termination of the agreement came out on stage as the company and the proposed investors couldn’t resolve their differences on the issue, according to the Vascon Engineers’ filing to the exchange.

The company posted a Rs 1.90 crore net profit for the quarter ended March, 2017 against a net loss of Rs 1.48 crore for the corresponding period in the previous year. However, the company posted a decline of 25.47 per cent in its sales, to Rs 57.48 crore during the quarter ended March, 2017.
   
The BSE Realty index stood at 2019.33 level, up by 0.93 per cent, at 11:10 hrs IST, driven by India Bulls Real Estate at Rs 183.85, up by 4.13 per cent on BSE, on June 12, 2017. Vascon Engineers stood at Rs 45.45, down by 19.98 per cent on the BSE, at the same time.