New-Delhi-based ceramic tiles maker Kajaria Ceramics Ltd (KCL) is acquiring 51 per cent stake in Taurus Tiles Pvt Ltd by subscribing to the equity shares of the company for an undisclosed amount, as per a stock market disclosure.
Taurus Tiles is setting up a plant having 5 MSM annual capacity of polished vitrified tiles.
Simultaneously Kajaria’s board has approved a plan to hike its stake in Jaxx Vitrified Pvt Ltd to 61 per cent by acquiring an additional 10 per cent stake. The firm did not disclose the deal value.
In January 2012, it had acquired 51 per cent stake in Jaxx Vitrified for Rs 6.26 crore. Incorporated in 2010, Gujarat-based Jaxx Vitrified manufactures and markets polished vitrified tiles. In April 2013, Jaxx Vitrified had purchased a plant with 2.6 MSM vitrified tiles capacity.
The company’s board also approved a plan to acquire 100 per cent stake in Kajaria Bathware Pvt Ltd and to transfer 64 per cent stake in Kajaria Sanitaryware to Kajaria Bathware.
Kajaria scrip was quoting at Rs 480.25 a share on the BSE at 3.26 PM, up 3.2 per cent in a weak Mumbai market on Wednesday.
Kajaria Ceramics manufactures and sells ceramic floor and wall tiles across the country. It also makes polished vitrified tiles and glazed vitrified tiles.
To increase its capacity, Kajaria Ceramics has been acquiring stake in small companies. In the past it has also acquired majority stake in Soriso Ceramic and Cosa Ceramics.
In January this year, WestBridge Capital Partners picked up additional 1.95 per cent stake in Kajaria Ceramics for Rs 44.25 crore. With this, WestBridge holds 12.25 per cent stake in the company.
(Edited by Joby Puthuparampil Johnson)