India Cements share price gained over 10% in early trade today amid a report that ace investor Radhakishan Damani was planning to buy a controlling stake in the company. Damani held 10.29 percent stake in the cement maker, while his brother Gopikishan Shivkishan Damani had 8.26 percent and the rest 1.34 percent was held by both together, as per the shareholding pattern at the end of quarter ended March 2020.
Buoyed by the prospects of Damani buying a controlling stake, share price price of India Cements gained 10.56% to Rs 139.3 against previous close of Rs 126 on BSE.
India Cements share has gained 6.37% in last two days. The small cap stock opened with a gain of 6.75% at Rs 134.50 today. India Cements share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has climbed 2.54% in a week. Total 12.44 lakh shares changed hands on BSE amounting to turnover of Rs 16.59 crore. The stock has gained 86% since the beginning of this year and 43.36% during last one year. Market cap of India Cements rose to Rs 4,157 crore.
According to a Bloomberg report, Damani made an informal contact with N. Srinivasan, the controlling shareholder of India Cements, to explore a takeover opportunity.
Srinivasan owns around 29% stake in the Chennai-based cement maker. The deal, if it takes place, will help Damani branch out his holdings while India Cements would get an investor with deep pockets to brace it against competitors such as UltraTech Cement Ltd. and LafargeHolcim Ltd., the report stated.
By Aseem Thapliyal