India Cements soars 10.5% on buzz that Dmart-owner Radhakishan Damani seeks to buy controlling stake

Exchanges have sought clarification from India Cements over the buzz.

Jun 17, 2020 03:06 IST India Infoline News Service

Investors were highly bullish in Indian Cements stock price on Wednesday, so much that it even gained to an intraday high of Rs139.30 per piece giving a whopping 10.55% return on Sensex. Investors faith in the India Cements come after a buzz that billionaire Radhakishan Damani who owns Avenue Supermarts is considering to buy a controlling stake in the company.

Exchanges have sought clarification from India Cements over an Economic Times report quoting "Billionaire Radhakishan Damani considers taking control of India Cements".

India Cements reply is awaited.

According to the report, Damani has informally reached out to the cement manufacturer’s controlling shareholder, N. Srinivasan, to explore a takeover.

Srinivasan currently holds about 29% stake in India Cements.

The report further points out that, Srinivasan is also exploring other investors to ward off any hostile bids. However, it added that Damani has promised a friendly change in management and isn’t seeking a hostile takeover. No decision has been made on how Damani and Srinivasan will proceed.

In the second half of the day's trading session, India Cements stock was performing at Rs132.30  per piece, up by 5% on Sensex at around 2.55 pm.

While investors showed a positive response in the cement company, negative sentiments were witnessed in the Avenue Supermarts stock over the buzz.

At the same time, the D-Mart parent stock was trading at Rs2353 per piece, down by 2% on Sensex.

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