Kesoram Inds up almost 4%

Kesoram Industries is up almost 4% at Rs.124.80 with an intra day high at Rs.129.40 with volumes also showing a modest increase.

The stock is reacting positively to the news that it might monetise by selling off its tyre factory at Haridwar.  The unit which has a capacity to make 600 tonnes of tyres per day or some 4.4 million truck tyres per year, has come up with a valuation or price tag for the unit at Rs.3573 crore.

The company plans to sell off the unit to a subsidiary, Cavendish Industries and is expected to be an all-stock deal. The shareholders are naturally happy and this will bring some relief to the company which has debt to the tune of some Rs.5700 crore. Though many other tyre companies also evinced interest, they found the valuation too steep.