S H Kelkar and Company rose 3.64% to Rs 336.50 at 15:21 IST on BSE after the company said its board of directors approved the acquisition of the flavours business of Gujarat Flavours Pvt. Ltd.
The announcement was made during market hours today, 30 August 2016.Meanwhile, the S&P BSE Sensex was up 426.85 points, or 1.53%, to 28,329.51
On BSE, so far 1.15 lakh shares were traded in the counter, compared with average daily volume of 49,842 shares in the past one quarter. The stock hit a high of Rs 349.95 in intraday trade so far, which is record high for the counter. The stock hit a low of Rs 321.20 so far during the day. The stock hit a record low of Rs 199.60 on 16 November 2015. The stock had outperformed the market over the past 30 days till 29 August 2016, rising 27.29% compared with 0.53% fall in the Sensex. The scrip also outperformed the market in past one quarter, gaining 49.16% as against Sensex's 4.63% rise.
The mid-cap company has equity capital of Rs 144.62 crore. Face value per share is Rs 10.
S H Kelkar and Company said that the acquisition of the flavours business of Gujarat Flavours Pvt. Ltd. (GFPL) would be on a slump sale basis for a net consideration of Rs 14.50 crore plus net working capital. GFPL is in the business of flavours, food colours, sachharin and fine chemicals since 34 years. S H Kelkar will route the acquisition through its subsidiary Keva Flavours (KFL).
S H Kelkar said that the acquisition will help it broaden its flavours business. GFPL's flavours business clocked turnover of Rs 10.49 crore in FY 2016. The profit margins of GFPL's flavours business are in line with the flabours industry.
S H Kelkar and Company's consolidated net profit rose 41.25% to Rs 27.53 crore on 16.16% growth in total income to Rs 259.06 crore in Q1 June 2016 over Q1 June 2015.
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S H Kelkar and Company along with its subsidiaries is engaged in the manufacture, supply and exports of fragrances (including aroma ingredients) and flavours.
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