Rain Calcining zooms on foreign acquistion buzz

Hyderabad-based Rain Calcining share prices on Wednesday shot up amidst speculation of a foreign acquisition by the company.

The Rain Calcining stock on Wednesday closed at Rs 46.80 on the Bombay Stock Exchange, 16.27 per cent higher than yesterday's close of Rs 40.25.

During the trading session, it went up to Rs 48.30, over 19 per cent than yesterday's close. The total trade quantity was 32.59 lakh on the BSE.

Stock brokers active at the counter said Rain Calcining was close to acquire an American calcining giant. The US company has over four times the production capacity of the Hyderabad-based calcining company, they added. Rain Calcining managing director N Jagan Mohan Reddy was not available for comments.

Rain Calcining has a capacity to manufacture of 300,000 tonne per annum of calcined petroleum coke - a high purity carbon used in the electrolytic smelting process that produces aluminium.

Sources close to the deal would help the company to become one of the largest calcining players in the world. If market sources are to be believed, the company on which Rain Calcining is eyeing is the New York-based Great Lakes Corbon.

Rain Calcining had signed a joint venture to set up a manufacturing company in Kuwait with a capacity of 350,000 tonne a year.

Alsagar, a Kuwait-based firm, would pick up a 76 per cent stake in the venture. Rain Calcining and an US firm, Oxbow, would pick up a 12 per cent stake each in the venture. Rain Calcining would invest $ 5.5 million towards the equity of the joint venture.