Kansai Nerolac to buy 68% stake in Nepalese paint maker
New Delhi: Kansai Nerolac Paints on Wednesday said it is in final stages of buying a majority stake in a Nepal-based paint company at an investment of Rs 7.55 crore.
The company is in the process of finalising a 68 percent stake in Nepal Shalimar Pvt Ltd (NSPL), Kansai Nerolac Paints Ltd (KNPL) said in a filing to the BSE.
"The investment to be made by Kansai Nerolac towards this proposed acquisition shall be Rs 7.55 crore," it added.
Further, Kansai Nerolac Paints would be giving a loan of around Rs 6 crore to fund the working capital requirement of NSPL, it said.
"With KNPL's entry in the Himalayan state, our consolidated profit would improve and in turn increase EPS which will benefit our shareholders," Kansai Nerolac Managing Director HM Bharuka said.
NSPL had posted a turnover of Rs 12.34 crore for the fiscal ended 2010-11.
Shares of Kansai Nerolac Paints Wednesday closed at Rs 870 on the BSE, down 1.66 percent from its previous close.