Cera Sanitaryware jumps after acquisition of controlling stake in Anjani Tiles

Cera Sanitaryware surged 3.45% to Rs 1,913 at 15:13 IST on BSE after the company said that Anjani Tiles has become a subsidiary of the company with effect from 23 November 2015.

The announcement was made during market hours today, 23 November 2015.

Meanwhile, the S&P BSE Sensex was down 61.77 points or 0.24% at 25,806.72.

On BSE, so far 1,497 shares were traded in the counter as against average daily volume of 2,451 shares in the past one quarter.

The stock hit a high of Rs 1,949.30 and a low of Rs 1,857 so far during the day. The stock had hit a record high of Rs 2,952.05 on 15 April 2015. The stock had hit a 52-week low of Rs 1,550 on 17 December 2014.

The stock had underperformed the market over the past one month till 20 November 2015, sliding 15.83% compared with Sensex's 5.27% fall. The scrip had also underperformed the market in past one quarter, declining 10.37% as against Sensex's 6.3% fall.

The small-cap company has equity capital of Rs 6.50 crore. Face value per share is Rs 5.

Cera Sanitaryware said that Anjani Tiles, Andhra Pradesh has allotted 51 lakh equity shares at par out of the total 1 crore equity shares of the company to Cera Sanitaryware and now Anjani Tiles has become a subsidiary company of Cera Sanitaryware with immediate effect.

It may be recalled that Cera Sanitaryware had on 23 October 2015, decided to enter into a joint venture agreement with Anjani Tiles for setting up manufacturing of high quality ceramic vertified tiles plant in Andhra Pradesh. Accordingly, Cera Sanitaryware had on 9 November 2015, entered into share subscription agreement with Anjani Group to acquire controlling interest of 51% in Anjani Tiles, Andhra Pradesh at a cost of about Rs 18.36 crore.

Cera Sanitaryware's net profit rose 13.5% to Rs 17.88 crore on 12.9% growth in net sales to Rs 225.30 crore in Q2 September 2015 over Q2 September 2014.

Cera's extensive product portfolio includes high end showers, steam cubicles, and whirlpools, besides sanitaryware and faucets.

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