India Cements shares surge 9% as Damani increases stake to 22.76%

Shares of India Cements soared 9% in early trade as market confidence in the stock boosted after veteran investor Radhakishan S Damani and a few others picked up a 2.03% stake in the firm through an open market deal, expanding shareholding to 22.76% from 20.73%.

The scrip rose to a high of Rs 191.80 compared to Rs 176.65 at the prior close on the National Stock Exchange. RK Damani has been marginally raising his stake in the cement major since 2020, as per the reports. He held 19.89% shares in the firm in the March quarter of 2020, followed by a marginal rise to 20.4% in July last year.

In January 2021, Damani had increased his stake to 21.14% and kept the same for the next 11 months. As per the reports, Damani, the founder of retail major D-Mart, was apparently planning to obtain a controlling stake in India Cements in 2020. Yet, N Srinivasan, India Cements Managing Director, later dismissed the reports. India Cements registered a drop in its net profit in July-September.

The profit after tax clocked in at Rs 30 crore, recording a drop of 57% as against the similar period of last year. The firm's revenue from operations, however, surged by 13% to Rs 1,235 crore.

For the quarter under review, the firm's production was enhanced by 8%. In April-September, production increased 21% to 4.12 million tonnes. India Cements’ extended marketing zones during this period helped improve dispatches with an overall sale of 2.36 million tonnes for the quarter, compared to 2.11 million tonnes during the previous year, which increased by 12%.

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