Nilkamal Acquires Material Handling Business

Nilkamal Ltd has announced that it has signed Business Transfer Agreement (BTA) on June 27, 2007 to acquire for a total consideration of Rs 25 Crore, the Material Handling Business of 'Prince Containers Pvt Ltd' (PCPL) and 'Prince Multiplast Pvt Ltd' (PMPL) controlled and owned by Shri. Mulchand S Chedda, Shri. Arvind S Chedeja along with their sons Shri. Mahish M Chedda and Shri. Nehal A Chedda (Sellers). Under the said BTA, the Company has acquired certain movable assets and intangibles.

The combined turnover of Companies (PCPL & PMPL) under the BTA was approx. Rs 75 Crore for the financial year 2006-07. They were holding second position in the market and have helped the industry to grow in the early stage by providing qualitative and industry specific material handling products.

This acquisition will help the Company to further consolidate its position in the plastic processing industry.

The stock closed the day at Rs.179.50, down by Rs.0.55 or 0.31%. The total traded quantity was 1056 compared to 2 week average of 1598. The stock hit an intraday high of Rs.179.50 and low of Rs.175.50.

Source : Equity Bulls

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