Kanoria Chemicals and Industries gained 19.93% or Rs 8.20 to close at Rs 49.35 on the BSE. Today it touched a 52-week high of Rs 49.35. However, the stock is up nearly 91% in last one month.
It touched an intraday high of Rs 49.35 and an intraday low of Rs 44. There were pending buy orders of 271,079 shares, with no sellers available. The total traded volumes were of 991,103 shares. Its market capitalisation stands at Rs 277.82 crore. What's buzzing? Aditya Birla Chemicals India has agreed to buy the Chloro Chemicals unit of Kanoria Chemicals & Industries Ltd for Rs 830 crore in cash, reports CNBC-TV18. The Chloro Chemicals unit earned revenue of 3.03 billion rupees for the year ended March 31, 2010, a release from the company said. (Click here for management talk) Tulsian on the deal: SP Tulsian of sptulsian.com said that, "It is an unfortunate deal for minority shareholders because I just heard Mr Kanoria explaining the contours of the deal. If you go by the broad parameter, Rs 830 crore is a total consideration on a slump sale basis. Obviously, the slump sale will attract tax which on a ballpark figure will be about Rs 200 crore taxes. They have earmarked about Rs 250 crore for debt retirement and if you knockoff this Rs 450 crore, the residual amount left with the company is close to about Rs 380 crore." He further added, "If you see the shareholding pattern, Mr Kanoria has been saying that if they distribute the dividend, the majority chunk will go to them but I fail to understand that even if you take this situation now, the entire amount is at the command of Mr Kanoria to the extent of about Rs 380 crore to Rs 400 crore and minority shareholders are not getting anything." "Coming on the shareholding pattern, promoters are holding 57%, while the six institutional investors of which IFCI and the other general insurance and LIC are the major shareholders holding 25% stake. They should raise their voice because 18% of the minority shareholders could have very well been compensated in lieu of the amount of tax which the company will be paying on these transactions which is to the extent of about Rs 180-200 crore." "It all depends on the return down value of all the assets of this particular division. These things are very unfortunate. This is again a repeat of similar transactions like in the past we have discussed Gwalior Chemicals, Borosil Glass and Piramal Health. If they would have had any intention of giving dividend, in that event they would have gone for a stake sale only where an open offer would have triggered because the dividend distribution tax attracts 18% tax." "On the face of it, you can make out that the management has no respect and are not concerned about the interest of the minority shareholders and they just talk that they got good price, they have good opportunity in their Formaldehyde plant, in their Ankleshwar plant and in their Vizag plant. I feel pity for the minority shareholders." Market Wrap: Here are 6 stocks which made headlines today Peer Comparison:| Company | Last Price (Rs) | Market Cap (Rs in Cr) | Sales Turnover (Rs in Cr) | PAT (Rs in Cr) |
| Tata Chemicals | 364.65 | 9289.69 | 5476.64 | 434.78 |
| Pidilite Ind | 151.6 | 7673 | 1949.77 | 293.5 |
| United Phos | 153.8 | 7102.55 | 2555.13 | 181.29 |
| Guj Flourochem | 349.85 | 3843.1 | 997.24 | 334.16 |
| BASF | 655.4 | 2672.06 | 1394.14 | 96.81 |
| BOC India | 308.1 | 2627.61 | 992.13 | 93.63 |
| Himadri Chem | 40 | 1542.93 | 505.93 | 107.34 |
| Guj Alkali | 150.25 | 1103.39 | 1315.87 | 171.84 |
| Solar Ind | 580 | 1004.78 | 483.5 | 31.27 |
| Gulf Oil Corp | 85.65 | 849.18 | 976.06 | 45.07 |
| Kanoria Chem | 49.35 | 277.82 | 430.52 | 27.97 |
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