Century Textiles Falls, UltraTech Gains After Century Agrees To Merge Cement Business
Shares of Century Textile fell as much as 9 percent while UltraTech Cement surged as much as 4 percent after the former decided to carve out its cement business and merge it with India’s largest cement maker as it looks to pare debt and focus on its real estate business.
Ultratech will get three integrated cement units of Century Textiles in Madhya Pradesh, Chhattisgarh and Maharashtra with a total capacity of 11.4 million tonnes per annum and a grinding unit in West Bengal of 2 mtpa. The transaction is subject to necessary approvals and is likely to be completed within 6-9 months.Enterprise value of the grinding unit stands at Rs 536 crore or $40 per tonne.Enterprise value of its cement plants stands at Rs 8,085 crore or $106 per tonne.The deal does not consider the upcoming 1.2 mtpa cement plant and 0.7 mtpa clinker
Indian equity benchmarks were trading on a subdued note as gains in State Bank of India, ICICI Bank and Tata Steel were offset by losses in Maruti Suziki, Infosys and Sun Pharma.
The S&P BSE Sensex fell 0.22 percent or 78 points to 34,770 and the NSE Nifty 50 index declined 0.21 percent or 21 points to 10,575.
Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Auto index's 0.74 percent drop. On the flipside, the S&P Basic Materials index was the top gainer, up 0.14 percent.
The mid- and small-cap shares were underperforming their larger peers as the S&P BSE MidCap index declined 0.6 percent and the S&P BSE SmallCap index fell 0.4 percent.
Indian equity benchmarks were trading on a subdued note as gains in State Bank of India, ICICI Bank and Tata Steel were offset by losses in Maruti Suziki, Infosys and Sun Pharma.
The S&P BSE Sensex fell 0.22 percent or 78 points to 34,770 and the NSE Nifty 50 index declined 0.21 percent or 21 points to 10,575.
Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Auto index's 0.74 percent drop. On the flipside, the S&P Basic Materials index was the top gainer, up 0.14 percent.
The mid- and small-cap shares were underperforming their larger peers as the S&P BSE MidCap index declined 0.6 percent and the S&P BSE SmallCap index fell 0.4 percent.
