Penny stock below Rs 100 in focus as company acquires 80% shareholding of Sai Veeran Agencies Pvt Ltd to expand business of real estate in South India
The company has a market cap of Rs 496 crore and the stock is up by 52.3 per cent from its 52-week low of Rs 56.50 per share.
Kothari Products Ltd has announced the acquisition of 80 per cent shareholding in Sai Veeran Agencies Private Limited (SVAPL), making it a subsidiary. SVAPL, incorporated on September 14, 2020, is involved in the real estate business and trading of electrical and electronic goods. This acquisition, costing Rs 118.32 crore in cash consideration, is a strategic move to expand Kothari Products' real estate business in South India. The transaction did not involve any related party dealings, as the promoter/promoter group has no interest in SVAPL, and no governmental or regulatory approvals were required, with the acquisition already completed.
SVAPL's financials show a paid-up equity share capital of Rs 97 crore and a turnover of Rs 61.30 crore for FY24 (audited). Its turnover has shown significant growth over the last three years, from Rs 12.38 crore in FY22 to Rs 60.19 crore in FY23 and then to Rs 61.30 crore in FY24. This acquisition strengthens Kothari Products' presence in the real estate sector and diversifies its business portfolio.
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Incorporated in 1983, Kothari Products Ltd, the flagship company of the Kothari Group, has evolved from its origins in manufacturing Pan Masala and Gutka under the "Pan Parag" brand. Currently, the company primarily operates in Real Estate, Investments, and International Trade. Its trading division is actively involved in the import and export of a diverse range of products, including agro-based commodities, minerals, metals, petroleum products, coal, and various electronic and industrial goods.
The company has a market cap of Rs 496 crore and the stock is up by 52.3 per cent from its 52-week low of Rs 56.50 per share.
Disclaimer: The article is for informational purposes only and not investment advice.