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Sujana Towers gains on plan to divest towers business on slump sale basis

07 May 2015 Evaluate

Sujana Towers is currently trading at Rs. 13.49, up by 0.76 points or 5.97% from its previous closing of Rs. 12.73 on the BSE.

The scrip opened at Rs. 13.50 and has touched a high and low of Rs. 13.50 and Rs. 13.01 respectively. So far 10,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 32.75 on 12-Jun-2014 and a 52 week low of Rs. 7.47 on 09-May-2014.

Last one week high and low of the scrip stood at Rs. 14.70 and Rs. 12.61 respectively. The current market cap of the company is Rs. 70.00 crore.

The promoters holding in the company stood at 36.49% while Institutions and Non-Institutions held 1.30% and 62.21% respectively.

Sujana Towers has decided to divest its towers business to Agarwal Steel Structures (India), a Hyderabad-based company. This is a slump sale and there will be no change in the shareholding pattern of the promoters in the company. The agreements are likely to be inked within 60 days of securing mandatory approvals.

The value of assets proposed to be transferred is Rs 2,040 crore and the liabilities of Rs 1,475 crore are secured loans plus Rs 199.96 crore is from the creditors. The net consideration is expected to be Rs 340 crore.

Sujana Towers is engaged in manufacturing of galvanized steel towers used in the power transmission and telecom tower sector. The company is a part of the Sujana group which is into diversified business activity with presence in construction & structural steel, power transmission & telecom towers and allied services, energy (generation, distribution, green energy consulting and manufacture of energy saving LEDs), basic and urban infrastructure development, precision engineering components, domestic appliances and international trade.


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