Kesoram down as takeover news turns speculative

Kesoram Industries declined around 2.4% on BSE after the company disowned the news about an imminent take over of the company's tyre business by Kumar Mangalam Birla

Kesoram Industries declined around 2.5% on BSE after the company disowned the news about an imminent  take over of the company's tyre business by Kumar Mangalam Birla. Media reports had earlier stated that at a replacement price of around s 1500 crores, B K Birla's Birla Tyres, a part of Kesoram Industries will soon be taken over by the Kumar Managlam group.

Replying to BSE query in this regard the company's spokeperson said, "We must clearly and categorically state that Kesoram Industries Limited is not aware of any of the developments indicated in the news stream. This makes the contents of the news stream speculative."

BK Birla's company Kesoram Industries operates in four businesses including tyre, cement, rayon, heavy chemicals. Tyre business accounts for about 60% of its topline but the operational cost of the company is on the higher side which has impacted its performance.

The stocks opened at Rs 129 and hit a low of Rs 124 on BSE and around 180,000 shares have changed hands on BSE and NSE combined, so far