GPEL offers unique exit option

The financial institutions holding in the company will be at 12.7 %, mutual funds at 2 % and the balance of 34 % will be with the public.

This offer is being made in response to the request from some of the GPEL sharehodlers who are currently not able to liquidate their holdings in view of the illiquid nature of stock and the low ruling market price.

The reduced customs duty on hard ferrites from 45 % to 25 % and now to 20 % and large scale imports at very low prices from China of ring magnets which constitute almost 70 % of GPEL’s turnover, are the two major factors that adversely affected the company’s profitability in the last two years. It is unlikely that this situation will undergo any change in the near future unless the imports from China go down significantly.

The promoters however, believe that the stock is significantly undervalued, but in the present environment, the only option that could be made available to those shareholders who are desirous of liquidating their stocks at reasonable rate, is to provide them with the proposed exit route.

The promoters are totally committed to the company and its business and are confident that those shareholders who are willing to take a slightly longer term view many find their investment in the company to be satisfactory.

GPEL will be investing about Rs 12 crore in upgrading its plant and technology and changing its product mix from commodity tuye ring magnets to speciality magnets