Tilaknagar Industries shares tumble 8%, a day after hitting all-time high; key details

Shares of Tilaknagar Industries Ltd fell 8 per cent in Wednesday’s trade, a day after hitting all-time high levels. This comes after the company signed definitive agreements with Pernod Ricard India to acquire the Imperial Blue (IB) business division in a landmark slump sale transaction valued at about €413 million.

The liquor manufacturer's stock fell 7.68 per cent to hit a low of Rs 486.50 on BSE over its previous day’s closing of Rs 527 apiece. At 10:36 am, the scrip was trading 5.41 per cent lower at Rs 498.50. The stock hit an all-time high of Rs 529.90 on Tuesday.

Among technical indicators, the stock is trading lower than its 5-day simple moving averages (SMAs), but higher than 10-day, 20-, 30-, 50-,100-, 150-day and 200-day SMAs.

On the financial front, Tilaknagar Industries posted a 121.25 per cent year-on-year (YoY) jump in net profit at Rs 88.5 crore for the June quarter compared with Rs 40 crore in the year-ago period. Revenue from the operations rose 29.9 per cent to Rs 863.8 crore for the June quarter against Rs 664.8 crore in the same period last year.

On the acquisition of Imperial Blue, Ameya Deshpande, President–Strategy & Corporate Development, Tilaknagar Industries, said,“The company feels that the potential acquisition is very transformative in nature and really can reshape the identity of a company from a regional brandy player to a national player with presence in 2 of the largest categories in IMFL.”

As part of the deal, TI will acquire 16 manufacturing units, of which two will be owned, and enter into a Transition Services and Manufacturing Agreement (TSMA) with Pernod Ricard to ensure smooth integration. The company will also ink a long-term supply agreement with Chivas Brothers for key raw materials used in IB’s production.