Grasim advances after acquisition of chlor-alkali business

Grasim Industries rose 2.58% to Rs 718.30 at 15:18 IST on BSE after the company announced acquisition of the Chlor-Alkali Business of KPR Industries (India).

The announcement was made after market hours yesterday, 18 February 2019.

Meanwhile, the S&P BSE Sensex was down 144.82 points or 0.41% at 35,353.62

On the BSE, 95,000 shares were traded on the counter so far as against the average daily volumes of 82,000 shares in the past two weeks. The stock had hit a high of Rs 723.35 and a low of Rs 697.20 so far during the day.

Grasim Industries signed a definitive agreement to acquire the Chlor-Alkali Business (CAB) of KPR Industries (India) by way of a slump sale, for a cash consideration of Rs 253 crore. The transaction will be funded through internal accruals. KPR would in turn utilize Rs 253 crore towards a full and final settlement of the lenders' dues under a One-Time Settlement. The transaction is subject to regulatory approvals.

The Business consists of an under-construction 200 TPD Chlor-Alkali project at Balabhadrapuram, Andhra Pradesh. Grasim would take over the assets and identified liabilities associated with the Chlor-Alkali Business.

The acquisition is in line with Grasim's strategy to strengthen operations on the East Coast of India. Further, the purchase of a partially-completed project vis-vis a greenfield project will translate into a shorter time-to-market. The acquired Business also has the potential for future expansions. Once operationalised, the project, along with other ongoing expansion projects, will enhance Grasim's caustic soda capacity to 1.22 MMTPA.

Grasim Industries' consolidated net profit surged 76.35% to Rs 957.92 crore on 21.66% rise in total income to Rs 18667.44 crore in Q3 December 2018 over Q3 December 2017.

Grasim Industries has a leadership positions in cement, viscose staple fibre, financial services and chemicals businesses.

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