Chennai: Corporate India is in a festive mood, making acquisitions for over Rs 5,200 crore and announcing a greenfield plant in the Navratri week.
The stock market gave the thumbs down to one acquisition, was lukewarm to another and slightly positive to the third.
The company that announced a new plant was greeted with a near four per cent increase in its share price.
The Sensex ended the day 111 points, or 0.59 per cent, higher.
Rain Commodities
Hyderabad-based Rain Commodities made the biggest acquisition when it announced to the stock exchanges that its subsidiary would buy a 100 per cent stake in Rutgers, a Belgium-based coal tar pitch manufacturer, for about Rs 4,920 crore ( €702 million).
The wholly-owned step-down subsidiary Rain CII Carbon LLC had signed a share-purchase agreement with Triton, an investment firm in Europe, to buy Rutgers. It expected to close the transaction in the first quarter of 2013.
Rain CII, the announcement said, planned to fund the deal through a €533-million long-term bonds issue, and with owned funds.
Dr Reddy’s Lab
Dr Reddy’s Laboratories said it would pay about Rs 190 crore (€27.39 million) for a 100 per stake in OctoPlus N.V., a service-based Dutch specialty pharmaceutical company.
The Hyderabad-headquartered Dr Reddy’s Labs and its subsidiaries announced an intended public offer to buy the outstanding shares of OctoPlus.
L&T Finance
L&T Finance Holdings said it would spend Rs 120 crore to buy from Societe Generale Consumer Finance, FamilyCredit Ltd, an established non-banking finance company with presence across two-wheeler and auto financing.
Lumax Auto New plant
Announcing that it would invest Rs 80 crore in a new plant in Bangalore, Lumax Auto Technologies said the plant would supply plastic moulded parts exclusively to Honda Motorcycle & Scooters India. Lumax would finance the new plant mainly from its own resources.
The plant is likely to go on stream in the first quarter of 2013-14.
While Rain Commodities’ shares were down 5.44 per cent on the BSE, to close at Rs 40.85, L&T Finance Holdings’ fell marginally to Rs 54.
Dr Reddy’s ended 1.20 per cent higher at Rs 1,721.50, and Lumax Auto rose 3.6 per cent at Rs 169.95.
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