Promoters of Cerebra Integrated raise shareholding
The promoters of Cerebra Integrated Technologies have been acquiring the company’s shares at regular intervals. As of Thursday, 19 April 2018, promoters of the company are holding about 1.35 crore shares of the company. They are looking at increasing the shareholding through the open market and the bourses have been informed duly about their intentions. This creeping acquisition might be a precedent of a possible buyback announcement by the company.
It may be added here that creeping acquisition is governed by SEBI Regulation 11 of the Takeover Code which refers to the process through which the acquirer together with persons acting in concert (Acquirer) increase their stakes in the target company by buying up to 5 per cent of the voting capital of the company in one financial year. As and when a promoter acquires the shares, the acquirer has to intimate the company and stock exchanges within two trading days in the prescribed form as per SEBI's disclosure guidelines. Creeping acquisition is done mainly to acquire further stakes in a company without increasing the share capital of the company.
Cerebra is an IT company engaged in the business of manufacturing electronic products, a systems integrator providing hardware and software solutions to government agencies and large corporates across the country. It has recently commissioned one of India’s largest state-of-the art, pollution free, e-waste recycling facilities with a capacity of 96,000 MT per annum.
E-waste is India's major concern. The Government of India has put in place stringent laws to stop this menace by formulating the E-Waste Handling Rules 2016 and has more recently amended it in March 2018.
In its first phase, Cerebra has set up the E-Waste recycling facility and in its near future, it will be adding catalytic converters, tube light and battery recycling facilities other than the gold extraction facility. The company has been performing well and for Q3FY18 it posted revenue of Rs. 89 crore, an increase of 29 per cent on yearly basis and 48 per cent, sequentially. The EBITDA for the company increased by 61 per cent and 29 per cent on yearly basis and sequential basis, respectively. The profit for the Q3FY18 was at Rs 8.61 crore, an increase of 23 per cent on yearly basis.