Astral Poly spurts after board OKs acquisition of Rex Polyextrusion

Astral Poly Technik rose 3.49% to Rs 1035 at 14:55 IST on BSE after the company said its board approved the acquisition of Rex Polyextrusion.

The announcement was made after market hours yesterday, 9 July 2018.

Meanwhile, the S&P BSE Sensex was up 235.44 points, or 0.66% to 36,170.16.

On the BSE, 17,000 shares were traded in the counter so far compared with average daily volumes of 25,000 shares in the past two weeks. The stock had hit a high of Rs 1037.50 and a low of Rs 1008.15 so far during the day. The stock hit a record high of Rs 1,059.85 on 26 June 2018. The stock hit a 52-week low of Rs 606.10 on 3 August 2017.

Astral Poly Technik said its board approved the acquisition of 51% equity share capital of Rex Polyextrusion by cash for Rs 75.22 crore. It also approved amalgamation of Rex Polyextrusion with the company. The company shall issue its equity shares in exchange of remaining 49% equity shares of Rex Polyextrusion under the scheme of amalgamation. The board also approved the draft scheme of amalgamation, valuation report and other relevant documents in relation to the scheme of amalgamation. The scheme is subject to applicable statutory and regulatory approvals including approval of the National Company Law Tribunal.

Rex is in the business of manufacturing and supply of corrugated and other plastic piping solutions. Proposed amalgamation shall expand the existing product line of Astral Poly Technik and allow it to enter into the corrugated and other piping solutions.

On a consolidated basis, net profit of Astral Poly Technik rose 17.69% to Rs 65.32 crore on 10.83% rise in net sales to Rs 650.60 crore in Q4 March 2018 over Q4 March 2017.

Astral Poly Technik manufactures plumbing, drainage, fire sprinkler and conduit piping systems for both residential and commercial applications, CPVC piping systems for industrial applications and column and pressure piping systems for agriculture applications.

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