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Aditya Birla Chemicals soars on receiving approval to acquire CAD division of JCL

09 Sep 2014 Evaluate

Aditya Birla Chemicals (India) is currently trading at Rs. 311.00, up by 19.95 points or 6.85% from its previous closing of Rs. 291.05 on the BSE.

The scrip opened at Rs. 299.00 and has touched a high and low of Rs. 312.95 and Rs. 298.50 respectively. So far 29,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 312.95 on 09-Sep-2014 and a 52 week low of Rs. 78.05 on 01-Oct-2013.

Last one week high and low of the scrip stood at Rs. 312.95 and Rs. 260.20 respectively. The current market cap of the company is Rs. 723.00 crore.

The promoters holding in the company stood at 56.31% while Institutions and Non-Institutions held 18.72% and 24.96% respectively.

Aditya Birla Chemicals (India) (ABCIL) has received an approval for acquisition of Chlor-Alkali Division (CAD Division) of Jayshree Chemicals (JCL) for a cash consideration of Rs 212 crore. This transaction will take the company to a higher growth trajectory.

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.

JCL’s revenue for the year ended March 31, 2014 stood at Rs 136 crore. With this acquisition, the total caustic soda capacity of ABCIL will increase to about 355,000 tons per annum.

Aditya Birla Chemicals (India) is one of the leading chlor-alkali manufacturing companies in India and is part of the chemicals business of the Aditya Birla group.

Peers
Company Name CMP
BASF India 3689.25
Tata Chemicals 707.70
SRF 2485.80
Pidilite Inds. 1395.60
Deepak Nitrite 1534.00
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