Prism Johnson gains after acquiring 50% stake in Gujarat-based Sunbath Sanitary

Prism Johnson added 2.72% to Rs 165.90 after the company announced that it has entered into a shareholders agreement for acquiring 50% of the issued and paid-up capital of Sunbath Sanitary.

Sunbath Sanitary is engaged in the business of manufacturing of sanitaryware at Morbi, Gujarat. It has manufacturing plant operating at an annual production capacity of approx. 11,000 tonnes. Sunbaths turnover for FY 2023-24 was Rs 12.5 crore.

Prism Johnson has acquired 60,00,000 equity shares of Rs 10 each, at a premium of Rs 21.20 per equity shares aggregating to Rs 18.72 crore on a preferential basis.

Offering the rationale for this investment, Prism Johnson stated: The arrangement will help the company with uninterrupted supply of sanitaryware in a continuous growing market at a competitive price. Since completion of this transaction, Sunbath has become a joint venture of the company, wherein the company holds 50% of equity share capital on a fully diluted basis, it added.

 

Prism Johnson (PJL) is an integrated building materials company, with wide range of products such as cement, ready-mixed concrete, tiles and bath products. The PJL group currently has four divisions - cement, H & R Johnson (HRJ, tiles business), ready mix concrete and RQBE Gen Insurance Co.

The company had reported a net loss of Rs 7.70 crore in the quarter ended June 2024 as against net profit of Rs 17.89 crore during the previous quarter ended June 2023. Sales declined 8.24% to Rs 1746.92 crore in Q1 FY25 over Q1 FY24.

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