The announcement was made after market hours on Friday, 26 March 2010.

Meanwhile, the BSE Sensex was up 82.83 points, or 0.47%, to 17727.59.

On BSE, 6,299 shares were traded in the counter as against an average daily volume of 7,189 shares in the past one quarter.

The stock hit a low of Rs 40.60 so far during the day. The stock had hit a 52-week high of Rs 46.30 on 15 February 2010 and a 52-week low of Rs 11.15 on 30 March 2009.

The stock had outperformed the market over the past one month till 26 March 2010, gaining 20.06% compared with the Sensex's 7.40% rise. It outperformed the market in past one quarter, soaring 26.15% as against 1.64% rise in the Sensex.

The small-cap textile company has an equity capital of Rs 12.86 crore. Face value per share is Rs 10.

The current price of Rs 41.75 discounts the company's Q3 December 2009 annualised EPS of Rs 0.75, by a PE multiple of 55.66.

Weizmann will pay not pay any consideration for merging Karma Energy with itself since Karma Energy is its wholly owned subsidiary.

For the merger of Weizmann Forex, the company will issue 9 equity share for 10 shares held in Weizmann Forex.

The company will demerge its power business into Karma Wind Power. It will issue 2 equity shares of Karma Wind Power for every 3 Weizmann shares. Post demerger, Karma Wind Power will be renamed as Karma Energy and its shares will list on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

Meanwhile, the company will also demerge its forex business into Chanakya Holdings. Two equity shares of Chanakya Holdings will be issued for 3 shares held in Weizmann. Chanakya Holdings will be listed on the BSE and the NSE.

Weizmann reorted a net profit of Rs 0.24 crore in Q3 December 2009 compared with a net loss of Rs 7.52 crore in Q3 December 2008. Sales rose 22.4% to Rs 8.73 crore in Q3 December 2009 over Q3 December 2008.

Weizmann manufactures and exports African Wax imitation prints, kitanges, khangas dress materials, grey fabrics, cotton yarn of all counts and garments - skirts, shirts, trousers etc. The company also exports engineering items, bicycles, toothpaste, match boxes.