ION Exchange shares rise 4% after board approves stock split, overseas acquisition

ION Exchange shares gained over 4% today after the board of water treatment & environment solutions firm cleared stock split in the ratio of 1:10. In a separate development, ION Exchange said its board has approved a proposal to invest and takeover a target company namely - MAPRIL -Produtos Quimicos e Maquinas Para a Industria, Lda which is located in Portugal. ION Exchange shares rose 4.2% to Rs 3509.95 compared to the previous close of Rs 3368.40 on BSE. Share price of ION Exchange has been gaining for the last two sessions. The small cap stock opened higher at Rs 3370.05 on BSE.

ION Exchange stock has gained 94.86% during the last one year and risen 25% since the beginning of this year. Total 7895 shares changed hands amounting to a turnover of Rs 2.70 crore on BSE. Market cap of the firm rose to Rs 5010 crore.

In terms of technicals, the relative strength index (RSI) of the ION Exchange stock stands at 53.7, signaling it's trading neither in the overbought zone nor in the oversold zone. ION Exchange stock shares have a beta of 0.8, indicating very low volatility in a year. ION Exchange stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. 

The sub-division of one equity share of the company with a face value of Rs 10 each will be split into 10 equity shares of face value of Re 1 each.

"Sub-division of 1 Equity share of the Company having face value of INR 10/- each into 10 (Ten) equity shares having face value of INR 1/- each, subject to regulatory/statutory approvals as may be required and the approval of the shareholders of the Company," the firm said in a filing.

The board has cleared stock split to enhance the liquidity in the capital market, to widen shareholder base and to make the shares more affordable for small investors,  said the firm.

Meanwhile, ION Exchange said it would invest approximately Rs 24 crore and acquire 11,11,500 equity shares equivalent to 100% of the issued and paid-up equity capital of MAPRIL – Produtos.

Stating the objective behind the acquisition, ION Exchange said this synergy will give the company a strong footing in European market. The shareholding in the target company shall be 100%.

Ion Exchange (India) is engaged into waste water treatment & environment solutions and caters to various industries, institutions, homes & communities. 

Headquartered in Mumbai, the company has seven manufacturing & assembly facilities across India, and one each in Bangladesh, UAE, Bahrain and Indonesia. It also has presence across other key geographies. 

Its industrial clients include – NTPC, NPC, Reliance, IOCL, JSW, CPCL, L&T, Arcelormittal Nippon Steel, Nayara Energy, IRCTC , BHEL, Tata Group. 

Institutional clients include Leela, Military Engineering Services, Taj Hotels, Holiday Inn, Hyatt Regency, Oberoi Hotels, Apollo Hospitals, Escorts Heart Institute, DLF, Puravankar. Meanwhile, Ion's international clients include Ion's Cargill, Technip France, Unilever Group, Jurong, Thyssenkrupp (Uhde), Jacobs, Kawasaki, Mitsubishi, PDO Oman, Emirates Steel, IKPP Indonesia. 

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