Jai Parabolic Springs springs Ltd springs back into action and bobs up to hit the second consecutive circuit on the news of the merger approval by the board, with Jamna Auto ltd:

Jai Parabolic Springs was locked at the 5% upper limit of Rs 32.45 after its board approved merging the company with Jamna Auto Industries some days back. The company made the announcement during trading hours on, 27 June 2007. The stock had an average daily volume of 11,212 shares on BSE in the past one quarter but flared up after the news of the merger. At the current price of Rs 32.45 it is traded cheap, based on year ended March 2007 EPS of Rs 2.91. The Jai Parabolic scrip had fallen 5.86% in one month to 26 June 2007 versus the Sensex's 0.72% rise. It dropped 3.44% in the past three months against the Sensex's 12.55% return. The stock had hit a 52-week high of Rs 57.15 on 7 December 2006 and a 52-week low of Rs 25.50 on 12 June 2007. On the other hand, Jamna Auto Industries was locked at 5% upper limit on last Friday. The company's board approved to merge Jai Parabolic Springs and MAP Springs with the company. Jamna Auto manufactures auto parts and specialises in the manufacture of laminated springs for automobiles. The Jamna Auto scrip had dropped 4.56% in one month to 26 June 2007 versus Sensex's 0.72% rise. It had fallen 2.22% in past three months against Sensex's 12.55% rise. As per the swap ratio, one share of Jamna Auto will be issued for every two shares held in Jai Parabolic. Jamna Auto Industries and Jai Parabolic Springs are part of Jamna Group. Jai Parabolic’ net profit zoomed 12,200% to Rs 2.46 crore in Q4 March 2007 from Rs 0.02 crore in Q4 March 2006. Sales moved up 1.9% to Rs 23.79 crore in Q4 March 2007 (Rs 23.35 crore). The company reported a net profit of Rs 5.03 crore in the year ended March 2007 as against loss of Rs 0.85 crore in year ended March 2006. Sales dropped 18.2% to Rs 87.15 crore in FY 2007 compared with Rs 106.57 crore. Jai Parabolic manufactures parabolic and tapered leaf springs. It is the sole supplier of these springs to Maruti Udyog, Bajaj Tempo, Eicher Motors, DCM Toyota, Swaraj Mazda, Mahindra Nissan, Allwyn and Tata Motors.

Earlier Jai Parabolic Springs’ board at its meeting held on 28 April 2006 had approved the issue of 25,03,295 equity shares of Rs 10 each as fully paid up, at a premium of Rs 62 per share, to Clear Water Capital Partners (Cyprus), a foreign institutional investor. This rate is well above the ruling market price of Rs 32.45. THIS IS THE REAL CATCH IN THIS SCRIP AND WHICH WAS HIDDEN TRIGGER .......AND MANY ANALYSTS OVERLOOKED THIS ASPECT, WHICH COULD SINGLE-HANDEDLY PROPEL THE SCRIP TO SUPER HIGH LEVELS.

The company had earlier entered into a technical collaboration with NHK Spring of Japan. The company has also entered the design/ manufacturing of high stress springs with the help of an improved process, that the company has access to, due to the technical collaboration.

I am looking at Rs.60 plus price of Jai Parabolic Springs Ltd price soon.....those of the Premium Members who have bought the scrip, please hold the scrip or do exactly as mentioned in the personal mails sent today at ur respective e-mail addresses.