Kohinoor Foods cooks well

Kohinoor Foods is up in the green today morning. The stock is up over 6% at Rs.40.50, with an intra day high at Rs.41.50. Volumes have spiked up almost 4 times.

The stock is in the limelight post its Board meeting yesterday evening, wherein the company allotted 70.48 lakh equity shares of Rs.160/each to Al Dahra International Investments LLC, UAE, after receiving the total consideration of Rs 112.77 crore.

Following the allocation of shares, Khedaim Abdulla Saeed Faris Alderei of Al Dahra has been appointed as an additional director of the company with immediate effect to hold office upto the date of next AGM.

This is a part of the agreement, wherein Al Dahra will take a 20% stake in the company and will have the option to buy another 4.99% stake within a period of six months from date of completion of investment. As per the JV, Kohinoor Foods will develop a rice facility for conversion of brown rice to white rice at Abu Dhabi.