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Sujana Towers spurts on reports tower deal with Agarwal Steel gets CCI nod

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Capital Market
Last Updated : Sep 09 2015 | 12:01 AM IST

Sujana Towers rose 15.81% to Rs 10.11 at 9:53 IST on BSE on reports the Competition Commission of India has aproved the proposed acquisition of the company's towers business by Agarwal Steel Structures on a slump sale basis.

Meanwhile, the BSE Sensex was up 110.65 points, or 0.44%, to 25,004.46.

On BSE, so far 36,000 shares were traded in the counter, compared with an average volume of 27,922 shares in the past one quarter.

The stock hit a high of Rs 10.39 and a low of Rs 9.20 so far during the day. The stock hit a 52-week high of Rs 22.95 on 11 September 2014. The stock hit a 52-week low of Rs 8.70 on 7 September 2015.

The stock had underperformed the market over the past one month till 7 September 2015, falling 28.44% compared with 11.84% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 19.46% as against Sensex's 7% decline.

The small-cap company has an equity capital of Rs 51.91 crore. Face value per share is Rs 10.

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According to media reports, the Competition Commission of India (CCI) has approved the proposed acquisition of the company's tower business by Agarwal Steel Structures on a slump sale basis, saying the deal is not likely to have an adverse impact on competition.

According to reports, the value of the assets proposed to be transferred will be about Rs 2040 crore. The company's liabilities (including creditors) stand at about Rs 1674.96 crore. The net consideration is expected to be Rs 340 crore.

Sujana Towers reported net loss of Rs 11.91 crore in Q1 June 2015 compared with net profit of Rs 1.03 crore in Q1 June 2014. Net sales fell 22% to Rs 333.58 crore in Q1 June 2015 over Q1 June 2014.

Sujana Towers is one of leading players in India's power transmission and telecom infrastructure space.

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First Published: Sep 08 2015 | 9:55 AM IST

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