Shares of Reliance Infrastructure gained as much as 3.18 per cent on Tuesday after the company informed bourses that it has successfully completed the sale of its 100 per cent shareholding in Reliance Cement Company to Birla Corporation
Shares of Reliance Infrastructure gained as much as 3.18 per cent on Tuesday after the company informed bourses that it has successfully completed the sale of its 100 per cent shareholding in Reliance Cement Company to Birla Corporation, the flagship company of MP Birla Group. At 1.40 pm, shares of Reliance Infrastructure were trading 2.24 per cent up at Rs 603.65. The scrip opened the day at Rs 597 and has touched a high and low of Rs 609.20 and Rs 595, respectively, in trade so far. Later, shares of Reliance Infra closed 1.58 per cent higher at Rs 599.75
On the other hand, Birla Corporation shares slid as much as 4.23 per cent on Tuesday. Shares of the company were trading 2.57 per cent down at Rs 663.45 at the same time. The scrip opened the day at Rs 688 and has touched a high and low of Rs 688 and Rs 652.10, respectively, in trade so far.
Shares of Birla Corporation settled 3.17 per cent down at Rs 659.35.
In a BSE filing, Reliance Infra said, “The deal was announced in February 2016 and has now been completed with transfer of shares and receipt of sale consideration.
Reliance Cement Company has an integrated cement capacity of 5.08 Mtpa at Maihar, Madhya Pradesh and Kundanganj Uttar Pradesh and a grinding unit of 0.5 Mtpa at Butibori, Maharashtra.
After the acquisition, Reliance Cement has become a wholly-owned material subsidiary of Birla Corporation. The acquisition has been funded through existing cash reserves and incremental debt.
For the quarter ended June 30, 2016, Birla Corporation reported a net profit of Rs 94.33 crore, up 278.08 per cent, against Rs 24.95 crore in the corresponding quarter a year ago. Net sales of the company jumped by 16.61 per cent year-on-year to Rs 893.57 crore for the quarter under review.