Asian Paints gains after closing Bhandup plant in Mumbai

Asian Paints rose 0.77% to Rs 522.50 at 9:28 IST on BSE after the company said it has closed down its plant at Bhandup in Mumbai and all employees of the unit have either taken voluntary retirement or shifted to its some other plants.

The company made the announcement after market hours on Monday, 5 May 2014.

Meanwhile, the BSE Sensex was up 126.98 points, or 0.57%, to 22,572.10.

On BSE, so far 5,689 shares were traded in the counter, compared with an average volume of 1.01 lakh shares in the past one quarter.

The stock hit a high of Rs 524.40 and a low of Rs 520 so far during the day. The stock hit a record high of Rs 560 on 8 November 2013. The stock hit a 52-week low of Rs 376.35 on 28 August 2013.

The stock had underperformed the market over the past one month till 5 May 2014, sliding 2.46% compared with the Sensex's 0.38% rise. The scrip had also underperformed the market in past one quarter, rising 7.15% as against Sensex's 10.78% rise.

The large-cap company has an equity capital of Rs 95.92 crore. Face value per share is Re 1.

Asian Paints announced that it has offered a voluntary retirement/separation scheme along with an alternate option of relocation to other factories/establishments of the company to all the workmen at the Bhandup plant in Mumbai. All workmen have accepted either the voluntary retirement/separation scheme or relocation to another factory/establishment of the company. The company has discontinued manufacturing activities at the plant with effect from 5 May 2014.

On a consolidated basis, Asian Paints' net profit fell 1.75% to Rs 329.35 crore on 13.03% rise in total income to Rs 3481.99 crore in Q3 December 2013 over Q3 December 2012.

Asian Paints is India's largest and Asia's third largest paint company. Asian Paints operates in 17 countries and has 25 paint manufacturing facilities in the world servicing consumers in over 65 countries.

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