Asian Paints gains on acquiring 51% stake in Kadisco Paint

Asian Paints rose 1.4% to Rs 833.20 at 09:32 IST on BSE after the company's indirect subsidiary completed the acquisition of 51% stake in Kadisco for a consideration of $18.95 million in cash.

The announcement was made after market hours yesterday, 10 February 2015.

Meanwhile, the S&P BSE Sensex was up 146.07 points or 0.52% at 28,501.69

On BSE, so far 18,146 shares were traded in the counter as against average daily volume of 1.93 lakh shares in the past one quarter.

The stock hit a high of Rs 836.70 and low of Rs 829.90 so far during the day. The stock had hit a 52-week low of Rs 461 on 20 February 2014. The stock had hit a record high of Rs 922.80 on 29 January 2015.

The stock had underperformed the market over the past one month till 10 February 2015, rising 1.08% compared with 3.27% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, surging 26.86% as against Sensex's 1.73% rise.

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

Asian Paints said that Berger International, Singapore (BIL) an indirect subsidiary of the company has completed the acquisition of 51% stake in Kadisco Paint and Adhesive Industry Share Company, Ethiopia (Kadisco) for a consideration of $18.95 million (approximately Rs 117.6 crore) in cash. Certain regulatory approvals are pending from the governing authorities in Ethiopia in relation to the said acquisition, Asian Paints said. Kadisco is one of the leading paint companies in Ethiopia and is engaged in the manufacturing and selling of decorative paints, industrial paints, automotive paints, other coatings and adhesives in Ethiopia.

On a consolidated basis, Asian Paints' net profit rose 11.8% to Rs 368.18 crore on 5.8% rise in total income to Rs 3684.64 crore in Q3 December 2014 over Q3 December 2013.

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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