Carborundum Universal jumped 3.14% to Rs 761 after the company agreed to make a strategic investment in PLUSS Advanced Technologies.The investment is proposed to be made by acquiring the equity shares of PLUSS from the existing shareholders including promoters as well as subscribing to additional equity capital in PLUSS. As part of the agreement, Carborundum will acquire equity shares equivalent to 67.94% of the issued and paid-up equity share capital of PLUSS by 31 October 2021. The said shareholders' agreement envisages subscription to the equity shares equivalent to 12.53% of an enhanced issued and paid-up share capital of PLUSS by 31 October 2021. Consequently, CUMI will acquire stake aggregating to about 72% in the enhanced share capital of PLUSS.
The acquisition will aggregate to Rs 115 crore and will be funded through internal accruals.
PLUSS is a specialty materials research and manufacturing company involved in the fields of Phase Change Materials I (PCM) for thermal energy storage and speciality polymeric additives for enhancing mechanical properties.
Shares of Carborundum Universal hit a 52-week high of Rs 774.80 in intraday today. Carborundum Universal manufactures and sells abrasives, ceramics (industrial ceramics and refractories) and electrominerals.
On a consolidated basis, Carborundum Universal posted a 290.9% jump in net profit to Rs 77.13 crore on a 59% rise in net sales to Rs 705.78 crore in Q1 FY22 over Q1 FY21.
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