Sagar Cements gained 3.24% to Rs 694.10 at 12:00 IST on BSE after the company's board accorded in principle approval for the acquisition of the entire assets in the grinding unit owned by Toshali Cements.
The announcement was made after market hours yesterday, 29 June 2016.Meanwhile, the S&P BSE Sensex was up 169.69 points or 0.63% at 26,910.28.
On BSE, so far 16,019 shares were traded in the counter as against average daily volume of 16,401 shares in the past one quarter. The stock hit a high of Rs 710 and a low of Rs 681 so far during the day. The stock had hit a record high of Rs 719 on 28 June 2016. The stock had hit a 52-week low of Rs 305.10 on 25 August 2015. The stock had outperformed the market over the past one month till 29 June 2016, gaining 15.63% compared with Sensex's 0.33% gains. The stock had also outperformed the market in past one quarter, advancing 78% as against Sensex's 7.39% rise.
The mid-cap company has equity capital of Rs 17.39 crore. Face value per share is Rs 10.
Sagar Cements said that the company's board of directors at its meeting held yesterday, 29 June 2016 accorded its in principle approval for the acquisition of the entire assets in the grinding unit of 1.81 lakh tons per annum capacity in Bayyavaram, Vizag district, Andhra Pradesh, owned by Toshali Cements, Hyderabad, at a cost of around Rs 60 crore (including transaction cost). The transaction which is expected to be completed by 30 September 2016, is subject to successful completion of due diligence and obtaining of other approvals as may be required by the company to commence its grinding operations in the unit. Post acquisition, the company proposes to increase the capacity of the unit to 3 lakh tons per annum by optimizing the equipment already available with the company by infusion of funds to the extent of around Rs 6 crore. The acquisition of the assets will enable the company to save logistics cost and to introduce slag cement to cater markets in Visakhapatnam, Vizianagaram, Srikakulam and parts of Orissa.
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Sagar Cements' net profit fell 29.9% to Rs 15.21 crore on 16% decline in net sales to Rs 152.11 crore in Q4 March 2016 over Q4 March 2015.
Sagar Cements is engaged in manufacturing of cement.
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