The announcement was made during trading hours today, 5 March 2010.

Meanwhile, the BSE Sensex was up 39.01 points, or 0.23%, to 17,010.71.

On BSE, 5627 shares were traded in the counter as against an average daily volume of 3050 shares in the past one quarter.

The stock hit a high of Rs 16.80 and a low of Rs 15.25 so far during the day. The stock had hit a 52-week high of Rs 17.80 on 2 March 2010 and a 52-week low of Rs 6.15 on 16 March 2009.

The stock had underperformed the market over the past one month till 4 March 2010, rising 2.45% compared with the Sensex's 4.60% rise. It outperformed the market in past one quarter, gaining 22.82% as against 0.76% decline in the Sensex.

The small-cap financial service provider has an equity capital of Rs 14 crore. Face value per share is Rs 10.

The current price of Rs 16.65 discounts the company's Q3 December 2009 annualised EPS of Rs 2.17, by a PE multiple of 7.67.

The two subsidiaries that will merge with the company are Transwarranty Credit Care and Transwarranty Forex & Commodities.

Transwarranty Finance reported a net profit of Rs 0.76 crore in Q3 December 2009 compared with a net loss of Rs 0.09 crore in Q3 December 2008. Operating income soared 330.2% to Rs 1.85 crore in Q3 December 2009 over Q3 December 2008.

Transwarranty Finance is a full service financial services and investment banking company. The company's services are in investment banking, trade finance, and wealth management services.