Century Textiles jumps on buzz Kumar Birla to acquire stake

Century Textiles and Industries jumped 8.99% to Rs 454.75 at 11:59 IST on BSE on report Kumar Mangalam Birla will directly purchase a 16% stake in the company.

Meanwhile, the BSE Sensex was up 140.40 points, or 0.58%, to 24,262.14.

On BSE, so far 3.58 lakh shares were traded in the counter, compared with an average volume of 2.15 lakh shares in the past one quarter.

The stock hit a high of Rs 467.90 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 428 so far during the day. The stock hit a 52-week low of Rs 195.05 on 28 August 2013.

The stock had outperformed the market over the past one month till 16 May 2014, rising 15.69% compared with 8.28% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 41.70% as against Sensex's 18.44% rise.

The mid-cap company has an equity capital of Rs 93.04 crore. Face value per share is Rs 10.

According to the report, Kumar Mangalam Birla will directly purchase a stake of about 16% in Century Textiles and Industries, which he is eventually set to inherit from grandfather Basant Kumar Birla.

Four private companies will be used to consolidate the holding of the Aditya Birla Group chairman for the first time in the 117-year-old history of Century Textiles, the report added.

Aditya Marketing and Manufacturing, Essel Mining and Industries, IGH Holdings and Padmavati Investments will reportedly subscribe to 1.86 crore preferential warrants of Century Textiles, which will be converted into equity shares in 2015.

After conversion, these four investment companies will together hold a 16.77% stake in Century Textiles. The total promoter ownership will rise to 50.21% from 40.23% (as on 31 March 2014) after the conversion, report said.

Century Textiles & Industries reported net loss of Rs 4.90 crore in Q4 March 2014 as against net profit of Rs 17.95 crore in Q4 March 2013. Net sales rose 12.06% to Rs 1767.54 crore in Q4 March 2014 over Q4 March 2013.

Century Textiles and Industries is a trendsetter in cotton textiles and also has a remarkable presence in the yarn, denim, viscose filament rayon yarn, tyrecords, caustic soda, sulphuric acid, salt, cement, and pulp and paper industries.

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