 "Sagar Cements gains acquisition plan of grinding unit of Toshali Cements")
Sagar Cements has rallied 6% to Rs 710 on the BSE after the company on Wednesday announced the complete acquisition of grinding unit owned by M/s Toshali Cements for Rs 60 crore.
“The board has accorded its ‘in principle’ approval for the acquisition of the entire assets in the grinding unit of 181,500 tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by M/s Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost),” Sagar Cements said in a BSE filing.
Post acquisition, the company proposes to increase the capacity of the said unit to 300,000 tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore.
The acquisition will enable the company to save its logistic cost and to introduce slag cement to cater markets in Visakhapatnam, Viziangaram, Srikakulam and parts of Orissa, it added.
The transaction is expected to be completed by September 30, 2016, subject to regulatory approvals as may be required by the company to commence its grinding operations in the said unit.
At 09:45 AM, the stock was up 5% at Rs 706 on the BSE. A combined 49,247 shares changed hands on the counter on the BSE and NSE so far.
“The board has accorded its ‘in principle’ approval for the acquisition of the entire assets in the grinding unit of 181,500 tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by M/s Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost),” Sagar Cements said in a BSE filing.
Post acquisition, the company proposes to increase the capacity of the said unit to 300,000 tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore.
The acquisition will enable the company to save its logistic cost and to introduce slag cement to cater markets in Visakhapatnam, Viziangaram, Srikakulam and parts of Orissa, it added.
The transaction is expected to be completed by September 30, 2016, subject to regulatory approvals as may be required by the company to commence its grinding operations in the said unit.
At 09:45 AM, the stock was up 5% at Rs 706 on the BSE. A combined 49,247 shares changed hands on the counter on the BSE and NSE so far.