Astral Poly Technik gains on acquiring stake in Resinova Chemie

Astral Poly Technik advanced 2.58% to Rs 413.50 at 09:26 IST on BSE after the company acquired 76% stake in Resinova Chemie for Rs 212.80 crore.

The announcement was made after market hours on Friday, 21 November 2014.

Meanwhile, the S&P BSE Sensex was up 150.47 points or 0.53% at 28,485.10

On BSE, so far 2,322 shares were traded in the counter as against average daily volume of 39,039 shares in the past one quarter.

The stock hit a high of Rs 418 and a low of Rs 411.40 so far during the day. The stock had hit a 52-week low of Rs 122.50 on 26 November 2013. The stock had hit a record high of Rs 434.70 on 19 November 2014.

The mid-cap company has equity capital of Rs 11.24 crore. Face value per share is Re 1.

Astral Poly Technik on Friday, 21 November 2014 announced that it has acquired 76% stake in Resinova Chemie for Rs 212.80 crore. The transaction values Resinova at an enterprise valuation of Rs 289 crore, Astral Poly Technik said.

Engaged in manufacturing and marketing of a highly diversified range of adhesives and sealants in chemistries based on epoxy adhesives, acrylics, UV cure, and cyanoacrylates, among others, Resinova's products have varied applications including automobile, construction, chemicals, engineering, industrial, furniture, sanitary and household sectors. Resinova sells its products in around 50 brands and 600 SKUs with some of the key brands of the company being 'Bondtite', 'Resibond', 'Bondset', 'Solvobond', 'Vetra', 'Brushbond' and 'Zesta', etc. Resinova had revenues of Rs 218 crore for the 12 months period ended 30 September 2014.

This acquisition will synergise with Astral's existing businesses by deepening and widening its product offerings, the company said.

Commenting on the transaction, Sandeep Engineer, MD, Astral, said, In high growth Indian adhesive market, the Resinova acquisition provides a strong platform which is highly complementary to Astral's strengths. We see tremendous growth opportunities and are excited with the prospects to create lasting value for our shareholders.

Astral Poly Technik's net profit rose 27.6% to Rs 20.69 crore on 18.9% growth in net sales to Rs 303.33 crore in Q2 September 2014 over Q2 September 2013.

Astral Poly Technik manufactures CPVC plumbing systems for both residential and industrial applications, and also ASTM solvent weld lead free PVC plumbing systems.

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