India Cements, UltraTech Shares Rally On Acquisition Deal
Shares of India Cements hit a 52-week high, while that of UltraTech rose to a life high.
Shares of the India Cements Ltd. and UltraTech Cement Ltd. surged on Thursday after the latter launched an offer to buy a non-controlling stake in N Srinivasan's company.
UltraTech Cement will buy a 23% stake in India Cements, according to an exchange filing on Thursday. The leading cement maker will buy shares in India Cements at Rs 267 apiece, closing the deal within one month.
As per the shareholding pattern of India Cements for the quarter-ended March, Radhakishan Shivkishan Damani and Gopikishan Shivkishan Damani have collectively held a 20.78% stake in the company.
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Shares of India Cements hit a 52-week high, while that of UltraTech rose to a life high. The market capitalisation of India Cements rose past the $1 billion mark as the shares surged during the day.
India Cements' stock jumped as much as 13.78% so far in the day to Rs 298.8 apiece on the NSE. It was trading 8.9% higher at Rs 285.9 per share, compared to a 0.33% advance in the benchmark Nifty as of 11:49 a.m.
The share price has risen 33% in the last 12 months and 9.3% on a year-to-date basis. The total traded volume so far in the day stood at 394 times its 30-day average. The relative strength index was at 78, indicating that the stock may be overbought.
Six one out of the seven analysts tracking the company suggest 'sell', while one has a 'hold' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 40%.
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UltraTech's stock rose as much as 6.57% so far in the day to Rs 11,874.95 apiece. It was trading 2.67% higher at Rs 11,440.65 apiece at 11:48 a.m.
It has risen 43% in the last 12 months and 12% on a year-to-date basis. The total traded volume so far in the day stood at 15 times its 30-day average. The relative strength index was at 72, indicating that the stock may be overbought.
Thirty-four out of the 42 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 5.1%.
