JK Cement slips 9% on board nod for Rs 600 cr investments in paint venture

In the past one month, the stock price of JK Cement has tanked 28 per cent on concerns of earnings downgrade due to rising energy cost.

Shares of JK Cement slipped 9 per cent to Rs 2,395, also its fresh 52-week low, on the BSE in Monday’s intra-day trade after the company said its board approved an investment of Rs 600 crore into the paint venture, which will be infused over a five-year period.

The board has considered/ approved entering into Paint business through a wholly-owned subsidiary, formation of new wholly owned subsidiary and investment in the said wholly-owned subsidiary (WOS), JK Cement said in an exchange filing on Saturday, March 5, 2022.

The WOS would undertake manufacturing, selling, trading, importing and exporting and