Uniply Industries inks agreement to sell plywood division

India Infoline News Service | Mumbai | August 12, 2017 10:53 IST

Uniply Industries has announced that it has entered into an agreement to sell plywood division to its associate UV Boards for Rs 300 crore

Uniply Industries
Uniply Industries has announced that it has entered into an agreement to sell plywood division to its associate UV Boards for Rs 300 crore, on Friday.

UV Boards will fund the acquisition through the issuance of shares worth Rs 111 crore to Uniply and a cash consideration.

The UV Boards will pay Rs 42 crore for the purchase of Uniply’s Gujarat facility. The trademark of Uniply will be licensed to UV Boards for a total fee of Rs 75 crore to be paid equally over 10 years, in advance at the start of the year.

This transaction has resulted in a fully deleveraging the balance sheet of Uniply by repaying all long term debt outstanding of the company and its subsidiaries Vector projects to the tune of Rs 145 crore.

As a result of the transaction, Uniply’s stake in UV boards will increase to 37.11% and the company will have the right to nominate four members to the board of directors.

Stock view:

Uniply Industries Ltd ended at Rs 272.55, up by Rs 15.3 or 5.95% from its previous closing of Rs 257.25 on the BSE.
 
The scrip opened at Rs 251.5 and touched a high and low of Rs 274.8 and Rs 249.4 respectively. A total of 68310(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 651.59 crore.
 
The BSE group 'B' stock of face value Rs 10 touched a 52 week high of Rs 390 on 12-Jun-2017 and a 52 week low of Rs 170.1 on 12-Aug-2016. Last one week high and low of the scrip stood at Rs 310 and Rs 249.4 respectively.
 
The promoters holding in the company stood at 33.23 % while Institutions and Non-Institutions held 2.14 % and 64.63 % respectively.
 
The stock traded below its 100 DMA.

***Note: This is a NSE Chart

Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.

 

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