Raasi Cement

Price on 23/1/98: Rs 126.25

Price on 17/1/98: Rs 168

After being on the uptrend for more than a month to touch a high of Rs 168. The Raasi Cements scrip lost 25 per cent in the previous week. Raasi Cement was on the uptrend after the news that India Cements had made a bid to acquire stake in this Hyderabad based company. However, with no developments on the front the stock seems to have lost its uptrend.

Raasi Cements chairman BV Raju had then denied the possibility of any takeover. The bid for takeover was brushed off by Raasi Cement saying that the promoters themselves hold 43 per cent of the stake. 25 per cent was held by financial institutions and seven per cent was held by close family friends. For India Cements the take over would have augmented their capacity to 8 million tonnes. Their present capacity of 5 million tonnes was built up with the acquisition of Visaka Cement and Yerranguntla Cement. In 1996-97, Raasi Cement posted turnover of Rs 480 crore as against India Cements turnover of Rs 832 crore.