Sunita NagpalNew Delhi, Feb 27: After Raasi Cements, it's now Sri Vishnu Cements, a group company of the former. Sri Vishnu Cements is on the rise, thanks to speculators' hopes that India Cements will make an open offer for this company as well. The scrip, which was quoting at Rs 7.6 on February 16, zoomed to Rs 13.70 on the Bombay Stock Exchange on Friday. Volumes, too, shot up to 18,000 shares as against a daily average of 600-700 shares.Speculators are hoping that India Cements will make an open offer for Sri Vishnu Cements as well although, technically, the company is not bound to make an offer. The general feeling in the market is that India Cements may make an attractive offer (like in the case of Raasi Cements) which could be at a premium of around 70 per cent to the current market price.
According to sources, Raasi Cements holds 43 per cent stake in Sri Vishnu Cements although the company could not confirm this. However, market sources feel that the offer for Sri Vishnu may materialise only afterthe Raasi Cement deal is successfully completed.
Sri Vishnu Cements, which has a one-million-tonne capacity plant, earned a first-half net profit of Rs 6 crore on a turnover of Rs 82 crore.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
