Kesoram Industries share price rises nearly 7% in the last three sessions; here's why | Mint
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Business News/ Markets / Stock Markets/  Kesoram Industries share price rises nearly 7% in the last three sessions; here's why
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Kesoram Industries share price rises nearly 7% in the last three sessions; here's why

Kesoram Industries will hold a board meeting on November 30 to withdraw its proposed scheme of arrangement with its arm, Cygnet Industries, and explore options for the repayment or retirement of its existing Non-Convertible Debentures (NCDs).

On the technical front, Kesoram Industries share price opened at ₹126.19 apiece on BSE today. According to Ruchit Jain, Lead Research Analyst at 5paisa, the broader trend for the stock is positive.Premium
On the technical front, Kesoram Industries share price opened at 126.19 apiece on BSE today. According to Ruchit Jain, Lead Research Analyst at 5paisa, the broader trend for the stock is positive.

Kesoram Industries Ltd share price rallied by 5% on Tuesday's intraday trade following the company's announcement that it will hold a board meeting on Thursday, November 30, to withdraw its proposed scheme of arrangement with its arm, Cygnet Industries, and to look into options for the repayment or retirement of its existing Non-Convertible Debentures (NCDs).

The company would withdraw its scheme of arrangement, which was proposed on May 22, with regards to separating the rayon business from the cement business.

"Withdrawal of the company's proposed Scheme of Arrangement of May, 2022 with its wholly owned subsidiary, Cygnet Industries Ltd and possible options on repayment/retirement of the existing Non-Convertible Debentures," the company said in an exchange filing on Monday, November 27. 

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According to information on the company's website, Kesoram Industries Limited, a prominent Indian business conglomerate with a variety of business divisions, founded Kesoram Rayon in 1959. In 2016, the company was moved to Cygnet Industries Limited, a wholly-owned subsidiary of Kesoram Industries Limited.

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Kesoram Industries shares have been in focus since last Thursday, after CNBC-TV18 reported that cement major, UltraTech Cement Ltd, has showed interest in purchasing the cement assets of Kesoram Industries. UltraTech is presently carrying out due diligence at Kesoram Industries. The cement major is currently considering both options, including either purchasing the promoters' stake in Kesoram or acquiring the company's cement division, CNBC-TV18 reported, citing sources.

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Further, Adani Cements, the holding company of Adani Group cement firms – Ambuja Cements and ACC, is also considering a bid for Kesoram Industries' cement assets as it looks into inorganic ways to more than double its total production capacity to 140 million tonne per annum (MTPA) by FY28, said Financial Express (FE) in its news report.

"Some of the bankers had reached out to the group and they are weighing the options. Even though we are yet to hear from them, we believe the Adani Group is interested as they want to aggressively increase their production capacities," a banker close to the development told FE, according to the news report.

On the technical front, Kesoram Industries share price opened at 126.19 apiece on BSE today. On Friday's trade, the stock touched 52-week high level and closed at 120.19 apiece. According to Ruchit Jain, Lead Research Analyst at 5paisa, the broader trend for the stock is positive. The recent price upmove has been supported by good volumes and hence, the upmove could continue. The support for the stock is now placed around 118 and 110.

Earlier in August, Ambuja Cements, a flagship Adani Group company, announced the acquisition of Sanghi Industries Ltd (SIL) at an enterprise value of 5,000 crore. 

Also Read: Adani group company Ambuja Cements acquires Sanghi Industries at enterprise value of 5,000 crore. Shares rise 

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 28 Nov 2023, 11:53 AM IST
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