Grasim industries rises 2% after acquisition of KPR's Chlor-Alkali Business

Grasim Industries signed a definitive agreement to acquire the Chlor-Alkali Business (CAB) of KPR Industries (India) Ltd (KPR) by way of a slump sale, for a cash consideration of Rs253cr on February 19th, 2019.

Feb 21, 2019 08:02 IST India Infoline News Service

Shares of Grasim Industries were in the green during trading hours on Thursday. Shares rose 2% intraday Thursday after the company acquired the  chlor alkali business of KPR Industries. 

Grasim Industries signed a definitive agreement to acquire the Chlor-Alkali Business (CAB) of KPR Industries (India) Ltd (KPR) by way of a slump sale, for a cash consideration of Rs253cr. The transaction will be funded through internal accruals.

Grasim Industries is global leader in viscose staple fibre (VSF) and has planned to expand its VSF capacity from 0.5mtpa (present) to 0.79mtpa by FY21E at capex of Rs4,600cr. The company holds ~60% stake in UltraTech Cement. Grasim’s merger with Aditya Birla Nuvo (ABNL) provides it access to high-growth businesses.

Grasim Industries Ltd is currently trading at Rs747.15 up by Rs16.75 or 2.29% from its previous closing of Rs730.40 on the BSE.

The scrip opened at Rs731.70 and has touched a high and low of Rs751.20 and Rs725.45 respectively. So far 14,42,286 (NSE+BSE) shares were traded on the counter.

Related Story