Chembond Chemicals enters into a SPA

Chembond Chemicals has entered into a share purchase agreement with I-Chem solutions and I Chembond Water, where the company will acquire 49% of the equity shares of I Chembond Water, Malaysia.

Jan 11, 2017 09:01 IST India Infoline News Service

The Indian markets on Tuesday ended with gains, and had a positive day as compared with the last couple of sessions. 
 
Meanwhile in a recent development, Chembond Chemicals has entered into a share purchase agreement with I-Chem solutions and I Chembond Water, where the company will acquire 49% of the equity shares of I Chembond Water, Malaysia.
 
However, the acquisition will take place successfully if all the terms and conditions of the share purchase agreement are successfully fulfilled. 
 
Post the acquisition, Chembond Chemicals will hold 100% of equity share capital of I Chembond Water.
 
Going ahead, the stock of the company may see movements in January 11's trade. However, in the last one year, the stock has fallen by 10.42%. Currently, it is trading with a P/E of 20.29. EPS of the company on an half yearly basis stands at Rs 10.15. 
 
Stock View:
 
Chembond Chemicals Ltd is currently trading at Rs 206.5, up by Rs 0.6 or 0.29% from its previous closing of Rs 205.9 on the BSE.
 
The scrip opened at Rs 214.85 and has touched a high and low of Rs 220 and Rs 206 respectively. So far 27224(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 276.9 crore.
 
The BSE group 'XC' stock of face value Rs 5 has touched a 52-week high of Rs 257.48 on 28-Jul-2016 and a 52-week low of Rs 159.5 on 17-Feb-2016. Last one week high and low of the scrip stood at Rs 211 and Rs 195.5 respectively.
 
The promoters holding in the company stood at 69.6 % while Institutions and Non-Institutions held 0.36 % and 30.04 % respectively.
 
The stock is currently trading above its 200 DMA.

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