Pidilite gains after board approves acquisition of 70% stake in a waterproofing solutions company

Pidilite Industries gained 1.15% to Rs 604.30 at 10:40 IST on BSE after the company's board of directors at its meeting held yesterday, 30 March 2015, approved investment in equity shares of Nina Waterproofing Systems.

The announcement was made after trading hours yesterday, 30 March 2015.

Meanwhile, the BSE Sensex was up 72.50 points, or 0.26% to 28,043.45.

On BSE, so far 14,302 shares were traded in the counter, compared with an average volume of 73,107 shares in the past one quarter.

The stock hit high of Rs 607.50 and low of Rs 600 so far during the day. The stock hit a record high of Rs 637.55 on 20 March 2015. The stock hit a 52-week low of Rs 286.40 on 16 June 2014.

The stock had outperformed the market over the past one month till 30 March 2015, gaining 6.63% compared with 4.72% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 12.24% as against Sensex's 2.09% rise.

The large-cap consumer and specialities chemicals maker has an equity capital of Rs 51.27 crore. Face value per share is Re 1.

Pidilite Industries said that the board of directors of the company at its meeting held yesterday, 30 March 2015, has approved investment in equity shares of Nina Waterproofing Systems (Nina). The proposed shareholding of the company in Nina will be 70%, thereby making Nina a subsidiary of the company.

The initial investment of the company in Nina will be about Rs 23.33 lakhs. The board has also approved additional investment upto Rs 100 crore in Nina.

Nina was incorporated on 11 November 2014 and proposes to engage in the business of supply, installation and application of waterproofing systems.

Pidilite Industries' consolidated net profit rose 27.9% to Rs 124.36 crore on 12.3% rise in total income to Rs 1208.33 crore in Q3 December 2014 over Q3 December 2013.

Pidilite Industries' product range includes adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives, industrial and textile resins and organic pigments and preparations.

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