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Aditya Birla Chemicals gains on plan to acquire CA&P Division of SCIL

03 Jun 2013 Evaluate

Aditya Birla Chemicals (India) is currently trading at Rs. 80.95, up by 0.40 points or 0.50% from its previous closing of Rs. 80.55 on the BSE.

The scrip opened at Rs. 82.55 and has touched a high and low of Rs. 82.90 and Rs. 80.95 respectively. So far 1720 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 116.20 on 13-Dec-2012 and a 52 week low of Rs. 62.75 on 25-Jun-2012.

Last one week high and low of the scrip stood at Rs. 91.50 and Rs. 80.30 respectively. The current market cap of the company is Rs. 190.37 crore.

The promoters holding in the company stood at 56.31% while Institutions and Non-Institutions held 18.71% and 24.97% respectively.

Aditya Birla Chemicals (India) (ABCIL) has received an approval for acquisition of the Chlor-Alkali & Phosphoric Acid Division (CA&P Division) of Solaris Chemtech Industries (SCIL) for a cash consideration of Rs 153 crore. This transaction will enable ABCIL’s entry into the southern Indian market as well as the addition of phosphoric acid to its current product portfolio. The board of directors at its meeting held on May 31, 2013 has approved for the same. The transaction is however subject to statutory and regulatory approvals.

CA&P Division has a caustic soda manufacturing facility with an installed capacity of 60,000 tonnes per day (tpa) and Phosphoric acid plant with an installed capacity of 24,000 tpa, both located in Karwar in state of Karnataka and 3,000 acres of salt works in Gujarat. The caustic soda plant is not operational since December 31, 2012 because the mercury based technology had to be shut down as per the statutory requirement. ABCIL proposes to convert the mercury plant into membrane based cell technology. CA&P Division produced 33,747 tpa of Caustic and 21,379 tpa of Phosphoric acid in FY 2012-13 and had a gross turnover of Rs 244 crore.

Aditya Birla Chemicals (India) is a leading Chlor Alkali company with a caustic soda capacity of 242,725 tpa capacity. The company manufacturers various chlorine derivatives as value added products.

SCIL is a closely held unlisted company having its registered office in New Delhi.

 

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