Borosil Glass Works shares rallied as much as 11.60 per cent on Monday after it announced acquisition of 60.3 per cent shares in Klasspack for an undisclosed amount.
Borosil Glass Works shares rallied as much as 11.60 per cent on Monday after it announced acquisition of 60.3 per cent shares in Klasspack for an undisclosed amount. The acquisition is done by way of primary infusion of funds into the company as well as purchase of shares in secondary market. Borosil is engaged in the business of high quality glassware. Klasspack is a closely held company with manufacturing facility in Nashik, Maharashtra.
At 11.41 am, shares of Borosil Glass Works were trading 8.25 per cent up at Rs 4,403. The scrip opened at Rs 4,540.60 and has touched a high and low of Rs 4,540.60 and Rs 4,055.05, respectively, in trade so far. Later, the scrip closed 6.90 per cent up at Rs 4,348.
Shreevar Kheruka, managing director, Borosil in a release said, “With the acquisition, the company wishes to further its vision of being India’s most customer centric company. Our investment will help Klasspack to ramp up facilities and production to give our current pharmaceutical customers a high quality choice for sourcing their pharmaceutical packaging needs.”
Avendus, an investment bank, advised Borosil on the transaction.
For the quarter ended March 31, 2016, the company reported a net profit of Rs 16.58 crore, up 16.68 per cent, against Rs 14.21 crore in the corresponding quarter a year ago. Gross sales of the company stood at Rs 63.93 crore, up 14.47 per cent, against Rs 55.85 crore in the same quarter last year.