Linde India rose 2.05% to Rs 1798 after the company said that it has signed a business transfer agreement with HPS Gases, Vadodara, to acquire its entire packaged gases business along with certain distribution assets with effect from 1 November 2021.
The acquisition has been done for an aggregate cash consideration of Rs 27.5 crore.
As a part of this acquisition, the company will enter into other agreements with HPS Gases, viz. asset purchase agreement, non-compete agreement and agreement for product supply and purchase.
In line with these agreements, Linde India will supply liquid products to HPS Gases and purchase gases in packaged and mini bulk from HPS Gases under a long-term contract with them.
HPS Gases (part of the privately held SKY Oxygen group) is one of the oldest and reputed industrial gas players in Western India since 1988.
The aforesaid acquisition of the packaged gases business of HPS Gases will help expand Linde's presence in packaged gas and micro bulk market in Western India.
Separately, Linde India informed that a meeting of the board of directors of the company has been scheduled to be held on Tuesday, 10 August 2021, to consider and approve the unaudited standalone and consolidated financial results of the company for the second quarter and half year ended 30 June 2021.
On a consolidated basis, the company's net profit soared 677% to Rs 303.24 crore in Q1 March 2021 from Rs 39.03 crore in Q1 March 2020. Net sales during the quarter increased by 17% year-on-year (YoY) to Rs 441.42 crore.
Linde India is in the industrial gases business, providing a one-stop solution to all businesses for gas supply and related equipment and services. It manufactures cryogenic and non-cryogenic vessels and also design and commission projects.
On a year-to-date (YTD) basis, the stock has zoomed 85.31% while the benchmark Sensex has added 13.69% during the same period.
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