The shares of this cement manufacturing company jumped around 2 percent in Thursday’s trading session after a well-known investment bank bought a stake in the company. In six months, the shares have delivered multibagger returns of 153 percent to its shareholders.
With a market capitalisation of Rs. 4,842 crores, the shares of Kesoram Industries Ltd started Thursday’s trading session positively at Rs. 154.70 compared to 153.65. The shares hit an intra-day of Rs. 156, gaining around 2 percent and closed the day at Rs. 155.85 apiece.
According to reports, the well-known international investment banker Morgan Stanley Asia Singapore Pte bought 21.32 lakh shares, which is equivalent to 0.68 percent of paid-up equity at an average price of Rs 154.17 per share.
Coming onto the financial statement published by the company, the revenue decreased marginally by 4 percent from Rs. 999 crores in the June quarter to Rs. 954 crores during the September quarter. In addition, the net loss widened from Rs. 32 crores to Rs. 58 crores during the same timeframe.
Earlier, UltraTech announced the acquisition of Kesoram’s cement assets. The deal values were done at a premium price to an enterprise value of Rs. 7,500 crores. Under the demerger scheme, UltraTech Cement will issue 1 equity share of the face value of Rs 10 each for every 52 equity shares of Kesoram of the face value of Rs 10 each.
The company gets revenue majorly from two segments, primarily from the cement sector which contributes about 93 percent to the company’s revenue and the remaining 7 percent of revenue comes from rayon, transparent paper and chemicals.
Headquartered in Kolkata, Kesoram Industries Ltd was incorporated in 1919. The company is a flagship of B. K. Birla group which is engaged in the manufacturing of Cement and Rayon, TP and Chemicals.
Written By Vaibhav Patil
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