Kesoram Industries shares sharply lower after major block deal involving 3.5% equity

Kesoram Industries' major block deal

Cement manufacturer Kesoram Industries' shares are trading lower by over 5 percent on March 28, after a large block deal involving 3.5 percent of its equity, making it among the most-traded scrip by volume, with around 1.08 crore shares changing hands on the NSE in a single transaction.

This is a significant surge in its trading volume at over 28 times the three-month average.

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Kesoram's Q3FY25 earnings have shown significant declines, with the net loss widening to Rs 69.17 crore, 38 percent more than what it posted a year ago in Q3FY24. It also recorded a negative book value and high debt-to-equity ratio. The company’s revenue from operations stood at a decline of 1.4 percent to reach Rs 65.49 crore, as against Rs 66.41 crore in the same period for FY24.

UltraTech Cement had in February announced a 1:52 share swap ratio for the acquisition of Kesoram Industries. "In terms of the Scheme, the Company will issue: 1 fully paid-up equity share of Rs 10 each of the Company for every 52 fully paid-up equity shares of Rs 10 each held by equity shareholders of Kesoram Industries Limited," said UltraTech, with Kesoram fixing the record date as March 10.

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