Kansai Nerolac Paints rose 1.15% to Rs 485.35 at 09:21 IST on BSE after the company entered into an agreement to fully acquire Perma Construction Aids for Rs 29.10 crore.
The announcement was made after market hours yesterday, 27 December 2018.Meanwhile, the S&P BSE Sensex, was up 233.10 points or 0.65% at 36,040.38
On BSE, so far 387 shares were traded in the counter, compared with an average daily volume of 18,000 shares in the past two weeks. The stock hit high of Rs 486.25 and a low of Rs 484 so far during the trading session.
Kansai Nerolac Paints said that it has entered into a Share Purchase Agreement (SPA) to acquire 100% equity stake in Perma Construction Aids for a total consideration of Rs 29.10 crore. This is subject to adjustments for borrowings, working capital and fixed assets as at the closing date. Perma Construction Aids, incorporated in the year 1997, is engaged in construction chemical business with product range encompassing water-proofing, adhesives, epoxy and admixtures.
Commenting on the acquisition, H.M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints said that Kansai Nerolac is expanding its range so as to provide complete solution to customers. Construction chemical is complementary to paints and has synergies with paints distribution networks. The company will be strengthening its existing product portfolio with this acquisition.
Kansai Nerolac Paints' net profit fell 15.65% to Rs 121.99 crore on 10.71% increase in net sales to Rs 1286.25 crore in Q2 September 2018 over Q2 September 2017.
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Kansai Nerolac Paints manufactures a diversified range of products ranging from decorative paints coatings for homes, offices, hospitals and hotels to sophisticated industrial coatings for most of the industries. The company markets decorative paints under the Nerolac brand.
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