Saurashtra Cement soars after board OKs takeover of Snowcem’s paint biz
Saurashtra Cement jumped 7.20 per cent to Rs 61.80 after the company said its board has approved to take over the paint business of Snowcem Paints on slump sale basis and as a going concern. Snowcem Paints is a manufacturer of exterior cement-based masonry paint. The total consideration for the transaction is around Rs 55 crore.
“The closure of transaction is subject to successful negotiation and execution of the definitive agreements including the business transfer agreement and other such agreements customary to the transaction of this nature,” the company said in a BSE filing.
Saurashtra Cement is engaged in the business of manufacturing and selling of cement. The company markets cement under the brand name "HATHI CEMENT".
The company's consolidated net profit rose 9.24 per cent to Rs 20.68 crore on a 35.67 per cent jump in net sales to Rs 206.47 crore in Q3 FY21 over Q3 FY20. In the past six months, the stock has added 53 per cent while the benchmark Sensex has added 28.56 per cent during the same period.