Somany Ceramics to acquire 26% stake in CVPL

Ceramics tiles maker, Somany Ceramics Ltd has entered into a memorandum of understanding (MOU) with Commander Vitrified Private Limited (CVPL) and its promoters to acquire equity stake of 26 per cent in the latter for a consideration of Rs 3.25 crore, the company informed in a statement filed with the Bombay Stock Exchange (BSE). The company has kept an option of further increasing its stake in CVPL up to 51 per cent.

CVPL is at an advanced stage of setting up a new plant to manufacture about 2.65 million square meters of vitrified tiles (polished and glazed) per annum at Morbi in Gujarat. The plant is expected to commence production by the end of May 2012, the statement said.

"This strategic stake will give complete access to the Company to procure and sell the entire quantity of vitrified tiles to be manufactured by CVPL," said Somany Ceramics in the statement. Shares of Somany Ceramics closed positive on BSE with gain of 1.73 per cent over previous close.