Paramount Communications shares rebound 5% as board mulls acquisition plans

Shares of Paramount Communications Ltd rebound from the early cuts on Monday to trade flat ahead of its board meeting to consider the proposal for acquisition of Valens Technologies. The company board is scheduled to meet on Wednesday, it said in an exchange filing.

"The meeting of board of directors of Paramount Communications is scheduled to be held on Wednesday,  August 23, 2023, to consider the proposal for acquisition of 100 per cent equity shares of Valens Technologies from its existing shareholders," the company said in an exchange filing.

Following the announcement, shares of Paramount Communications dipped at the initial tick to Rs 51.1 but recouped 5 per cent from the early losses to Rs 53.45 on Monday, with a total market capitalization close to Rs 1,230 crore. The stock had settled at Rs 53.5 on Friday.

Shares of Paramount Communications have delivered multibagger returns to the investors from its 52-week low at Rs 13.65. The stock has surged about 300 per cent from these levels. The stock is up 40 per cent in the current month.

For the quarter ended on June 30, 2023, Paramount Communications reported a 107 per cent rise in the net profit at Rs 14.5 crore, compared to Rs 7.03 crore in the year ago period. Revenue from operations jumped 29 per cent to Rs 210.54 crore in Q1FY24 from Rs 163.73 crore in the previous year. EBITDA came in at Rs 18.51 crore, up 77 per cent on a year-on-year basis.

Paramount Communications is part of the Paramount group of companies, is one of India's leading wire and cable manufacturing companies. Over six decades of operations, the group has widened its portfolio, building on a prestigious clientèle that includes government, institutional and major private sectors.

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