This Article is From Apr 22, 2015

Century Textile Jumps on Buzz of Selling Cement Business

Century Textile Jumps on Buzz of Selling Cement Business
Shares of Century Textiles and Industries surged over 8 per cent to hit intraday high of Rs 774.9 on Wednesday after a report suggested that the company may sell its cement business and merge it with UltraTech Cement.

As per a news report Century Textile may carve out its cement business and merge it with Kumar Mangalam Birla led UltraTech cement in an all-share deal.

Analysts say the deal will help Century Textile to become debt-free as it had taken loans to expand capacity in the cement unit.

Century Textile has total cement capacity of 12.8 million tonnes (MT). The deal value is estimated at Rs 10,500 crore which value the cement unit at $132/tonne, the report said.

Shares of Century Textile closed 2.48 per cent higher at Rs 732.55 apiece, outperforming the broader Nifty, which ended 0.62 per cent higher.