Wednesday, November 19, 2008

Ess Dee Aluminium acquires majority stake in IndiaFoils

Ess Dee Aluminium spurted 8.97% to Rs 145.10 at 15:05 IST on BSE on reports the company will announce acquisition of a majority stake in India Foils later today, 19 November 2008.
The stock hit a high of Rs 146.45 and a low of Rs 131.45 so far during the day. The stock had a 52-week high of Rs 842.80 on 10 January 2008 and a 52-week low of Rs 110.75 on 27 October 2008.
The small-cap aluminum foil maker has an equity capital of Rs 27.82 crore. Face value per share is Rs 10.
The current price of Rs 145.10 discounts its Q2 September 2008 annualised EPS of Rs 27.35, by a PE multiple of 5.30.
Reports suggest the Board for Industrial and Financial Reconstruction (BIFR), the agency monitoring the revival of the ailing Vedanta group firm India Foils, has sanctioned Ess Dee's acquisition proposal.
Ess Dee will formally take over India Foils today, the reports added. Ess Dee will pay Rs 120 crore for a 90% stake in the firm.
India Foils manufactures aluminium foils and aluminium container sheets and light gauged strips which are used as packaging materials. The company also manufactures laminated flexible packages and treated, processed and laminated paper, paper board and containers.
Ess Dee Aluminium's net profit rose 66.7% to Rs 19.02 crore on a 61.1% rise in sales to Rs 102.37 crore in Q2 September 2008 over Q2 September 2007.
Ess Dee Aluminum manufactures aluminium foils for packaging purpose. The company cold-rolls aluminum into foil stock, and further processes it into printers stock and packaging for pharmaceuticals. Ess Dee also manufactures thermoforming polyvinyl chloride films.

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