Grasim rises after acquisition of Soktas India

Grasim Industries rose 1.43% to Rs 819.90 at 14:58 IST on BSE after the company signed a definitive agreement, to acquire 100% stake in Soktas India for an enterprise value of Rs 165 crore.

The announcement was made after market hours yesterday, 5 March 2019.

Meanwhile, the S&P BSE Sensex was up 187.55 points or 0.51% at 36,630.09

On the BSE, 39,000 shares were traded on the counter so far as against the average daily volumes of 57,000 shares in the past two weeks. The stock had hit a high of Rs 821.65 and a low of Rs 804.40 so far during the day.

Grasim Industries (Grasim) signed a definitive agreement, to acquire 100% equity shareholding of Soktas India (SIPL), from its current promoters, for an enterprise value of Rs 165 crore, subject to net debt and working capital adjustments, as of the closing date. The transaction will be funded by the company primarily out of internal accruals. SIPL will become a wholly owned subsidiary of Grasim upon completion of the transaction.

SIPL is currently a wholly owned subsidiary of SOKTAS Tekstil Sanayi ve Ticaret A.S., world renowned producer and marketer of fabrics, with its main facilities in Soke, Turkey. Today, SIPL is in the business of manufacturing and the distribution of premium cotton fabrics. Its manufacturing facility is located at Kolhapur, Maharashtra. Its plant capacity is about 10 million metres per annum of finished fabric.

SIPL sells premium fabrics in India under the "SOKTAS", "Giza House" and "Excellence by SOKTAS" brands. In Fiscal March 2018, SIPL reported revenue and EBITDA of Rs 186 crore and Rs 31 crore respectively.

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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