Jayshree Chemicals hit an upper circuit limit of 5% at Rs 15.30 at 10:09 IST on BSE after the company sold its Chlor Alkali business to Aditya Birla Chemicals (India) for a cash consideration of Rs 212 crore.
The announcement was made after market hours on Monday, 8 September 2014.
Meanwhile, the BSE Sensex was down 80.67 points, or 0.30%, to 27,239.18.
On BSE, so far 5,010 shares were traded in the counter, compared with an average volume of 14,616 shares in the past one quarter.
The stock opened with an upward gap, rising by the maximum 5% daily circuit and remained locked at the 5% level at Rs 15.30 so far in the day.
Also Read
The stock hit a 52-week high of Rs 15.84 on 4 September 2014. The stock hit a 52-week low of Rs 4.34 on 10 September 2013.
The stock had outperformed the market over the past one month till 8 September 2014, rising 45.80% compared with 7.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 62.91% as against Sensex's 7.57% rise.
The small-cap company has an equity capital of Rs 29.33 crore. Face value per share is Rs 10.
Aditya Birla Chemicals (India) (ABCIL) said the acquisition takes ABCIL to a higher growth trajectory. Shares of ABCIL were up 5.63% to Rs 307.45.
Chlor-Alkali division (CAD) is an environment friendly and energy efficient membrane cell facility located at Ganjam, Odisha and also has about 1600 acres of salt works in Andhra Pradesh. The current capacity of the facility is about 57,000 tons per annum. CAD is cost competitive, driven by strengths of the latest state of the art technology. With this acquisition, the total caustic soda capacity of ABCIL will increase to about 3.55 lakh tons per annum, ABCIL said in a statement.
Says Kumar Mangalam Birla, Chairman of the Aditya Birla Group "The acquisition is strategic and further strengthens our position in the Chlor-Alkali business. It will take our Chlor-Alkali business on a higher growth trajectory. The acquisition solidifies the Group's position as the country's largest producer of Chlor alkali and bolsters caustic soda supply which is a critical input for the Aluminium business. The business has potential for future growth."
Avers Lalit Naik, Sector Head for Chemicals, Aditya Birla Group 'We expect significant operational synergies on account of cost savings. The acquisition cost and proposed capital expenditure will be funded through a mix of internal accruals and debt."
Caustic soda is one of the essential inputs for the manufacture of alumina. It is also used widely in various other industries. CAD's manufacturing facility is strategically situated in the state of Odisha and is in proximity to various aluminium manufacturing facilities, which provides significant growth opportunities, ABCIL said.
Jayshree Chemicals reported net loss of Rs 2.38 crore in Q1 June 2014 as against net loss of Rs 1.39 crore in Q1 June 2013. Net sales rose 0.36% to Rs 33.68 crore in Q1 June 2014 over Q1 June 2013.
Jayshree Chemicals is engaged in the manufacturing of caustic soda, liquid chlorine and hydrochloric acid (HCL) and sodium hypo chlorite based on energy efficient latest membrane cell technology at Ganjam District, East Coast of Orissa having an installed capicity of 53200 MPTA, 35000 MPTA ,37000 MPTA AND 6500 MPTA of caustic soda, liquid chlorine and hydrochloric acid (HCL) and sodium hypo chlorite respectively.
Powered by Capital Market - Live News
