Camlin Fine Sciences jumps after acquisition

Camlin Fine Sciences rose 4.27% to Rs 101.40 at 13:28 IST on BSE after the company said one of its subsidiary acquired a 65% stake in a Mexican company for an aggregate amount of $7.8 million.

The announcement was made during trading hours today, 3 February 2016.

Meanwhile, the BSE Sensex was down 179.13 points, or 0.73%, to 24,359.87.

On BSE, so far 1.37 lakh shares were traded in the counter, compared with an average volume of 1.04 lakh shares in the past one quarter. The stock hit a high of Rs 102 and a low of Rs 95.60 so far during the day. The stock hit a record high of Rs 128.80 on 29 June 2015. The stock hit a 52-week low of Rs 78.50 on 25 August 2015. The stock had underperformed the market over the past one month till 2 February 2016, falling 11.75% compared with 6.20% decline in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 17.65% as against Sensex's 7.61% fall.

The small-cap company has an equity capital of Rs 9.63 crore. Face value per share is Re 1.

Camlin Fine Sciences announced that its subsidiary CFS Antioxidantes De Mexico S.A. DE C.V., Mexico (CFS Mexico) has entered into a share purchase agreements to acquire 65% stake in Mexico-based Dresen Quimica S.A.P.I.de C.V. (Dresen). Dresen, a medium-sized company, is engaged in manufacturing and distributing specialty intermediate chemical solutions used by the feed, food and other industrial products.

Dresen is proposed to be acquired with its group companies (a condition precedent), which includes Mexico-based Industrias Petrotec de Mexico, S.A. de C.V.; Peru-based Nuvel, S.A.C.; Guatemala-based Sritec, S.A., Colombia-based lnovel, S.A.S. and the Dominican Republic-based Grinel, S.A. As per the balance sheet for the year ending 31 December 2014 the combined net sales (along with proposed group companies) was $14.79 million.

Camlin Fine Sciences said that after the said acquisition, it may expand its market reach in the North, Central and South America.

The company has acquired the stake for an aggregate of $7.8 million and it will be completed by 2 May 2016.

On a consolidated basis, net profit of Camlin Fine Sciences declined 61.29% to Rs 5.06 crore on 19.59% decline in net sales to Rs 113.65 crore in the quarter ended September 2015 over the quarter ended September 2014.

Camlin Fine Sciences is engaged in the manufacturing of food antioxidants and ingredients.

Powered by Capital Market - Live News