Electrotherm (India) jumps on executing binding agreements with Saint Gobain

15 Dec 2011

Electrotherm (India) is currently trading at Rs 154.90, up by 3.30 points or 2.18% from its previous closing of Rs. 151.60 on the BSE.

The scrip opened at Rs 158.00 and has touched a high and low of Rs 158.00 and Rs 151.50 respectively. So far 43,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs 10 has touched a 52 week high of Rs 286.75 on 20-Dec-2010 and a 52 week low of Rs 106.05 on 22-Aug-2011.

Last one week high and low of the scrip stood at Rs 164.00 and Rs 149.05 respectively. The current market cap of the company is Rs 177.00 crore.

The promoters holding in the company stood at 32.83% while Institutions and Non-Institutions held 12.10% and 55.07% respectively.

Electrotherm (India) has executed binding agreements pursuant to which Saint-Gobain Produits Pour La Construction SAS, France (Saint Gobain) will acquire the ductile iron pipes (DI Pipes) business and 100% stake in a subsidiary of the company for Rs 950 crore plus the value of working capital at closing. The transaction will be subject to the terms and conditions as set out in the binding agreements entered into by the parties.

This transaction will enable Electrotherm (India) to focus on its core businesses of engineering and steel and also to reduce debt. KPMG Corporate Finance was the exclusive financial advisor to Electrotherm (India).

Electrotherm (India) established itself as a market leader in the induction of melting furnaces for the steel manufacturing in India and has further diversified into the steel manufacturing and electric vehicles business.

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