Carborundum at new high

Carborundum Universal, which had closed yesterday at Rs.759.75, opened slightly higher at Rs.760.05 and went on to hit a new 52-week high at Rs.800.

The stock price has gone up after the company said that it has entered into a definitive agreement for acquiring a controlling stake in PLUSS Advanced Technologies Private Limited (PLUSS) at an initial investment of Rs 115 crore.

The investment is proposed to be made by acquiring the equity shares of PLUSS from the existing shareholders, including promoters as well as subscribing to additional equity capital in PLUSS.

The company has entered into a Shareholders Subscription Agreement with PLUSS and its existing promoters as well as share purchase agreements with its existing shareholders, including Tata Capital Innovations Fund, a Venture Capital Fund of Tata Capital, a financial investor in the Company. CUMI will hold about 72% cent stake, post enhances capital of PLUSS.