Somany Ceramics Ltd. said it had entered into a memorandum of understanding or MoU with Commander Vitrified Pvt. Ltd., or CVPL, and its promoters to acquire equity stake of 26 percent for a total consideration of Rs.32.50 crore with an option to further increase the same up to 51 percent.
CVPL is at an advanced stage of setting up a new plant to manufacture around 2.65 million square meters of vitrified tiles (polished and glazed) per annum at Morbi in Gujarat. The plant is expected to commence production by the end of May 2012.
The company said this strategic stake would give complete access to the company to procure and sell the entire quantity of vitrified tiles to be manufactured by CVPL.
At the BSE, Somany Ceramics shares are currently trading at Rs.41.90, up 3.58 percent from the previous close.
by RTT Staff Writer
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