 "Kesoram Industries gains on tyre unit sale")
Kesoram Industries has rallied 15% to Rs 117 on the BSE in the early morning trades after the company on Saturday announced that it will sell its tyre business at Haridwar to JK Tyre & Industries and JK Asia Pacific Singapore Pte Ltd. for Rs 2,195 crore.
Kesoram said that it had signed a binding term-sheet with JK Tyre to divest its stake in Cavendish Industries, which houses a tyre business undertaking in Haridwar, for Rs 2,195 crore.
This transaction will strengthen the balance sheet of the company. As publicly announced earlier, proceeds from monetization of assets will be utilized to reduce the debt burden of the company, it added.
The deal is likely to be completed within December 2015, it said in a release.
At 09:26 AM, the stock was up 7% at Rs 109 on the BSE. The trading volumes on the counter nearly doubled with a combined 2.97 million shares changed hands on the BSE and NSE so far.
Shares of JK Tyre & Industries on the hand were trading 2% higher at Rs 110, after hitting a low of Rs 103 on the BSE in intra-day trade. A combined 1.24 million shares changed hands on the counter on the BSE and NSE.
Kesoram said that it had signed a binding term-sheet with JK Tyre to divest its stake in Cavendish Industries, which houses a tyre business undertaking in Haridwar, for Rs 2,195 crore.
This transaction will strengthen the balance sheet of the company. As publicly announced earlier, proceeds from monetization of assets will be utilized to reduce the debt burden of the company, it added.
The deal is likely to be completed within December 2015, it said in a release.
At 09:26 AM, the stock was up 7% at Rs 109 on the BSE. The trading volumes on the counter nearly doubled with a combined 2.97 million shares changed hands on the BSE and NSE so far.
Shares of JK Tyre & Industries on the hand were trading 2% higher at Rs 110, after hitting a low of Rs 103 on the BSE in intra-day trade. A combined 1.24 million shares changed hands on the counter on the BSE and NSE.
