Supreme Industries touches 52-week high after the company acquired Parvati Agro Plast’s PVC Pipes business for Rs 235 crore

Following the company's purchase of Parvati Agro Plast's PVC Pipes business for Rs 235 crore, Supreme Industries shares increased by about 2% to reach a 52-week high of Rs 4,564.20 in early trade on August 25.

For the purchase of its PVC-O, HOPE, and PVC Pipes business on a slump sale basis, Supreme Industries has inked a contract with Parvati Agro Plast (a proprietorship entity) and a member of the same family, subject to due diligence.

It consists of all fixed assets, including all tangible assets such as tools, molds and dies, spare parts, and all intangible assets such as trademarks and intellectual property rights, as well as all licences, approvals, and permissions. It also includes all material contracts, orders, and rate contracts in the amount of approximately Rs 235 crore, as well as adjacent contiguous land measuring 7.76 acres at an aggregate cash consideration of Rs 171 crore.

The Piping Division's capacity would be increased by 36,000 MT annually as a consequence of the acquisition of Parvati Agro Plast Business, and the company would also have access to O-PVC Pipe technology.

As of the close of August 31, 2023, shares of Supreme Industries will be included in the MSCI India Index.

The MSCI worldwide Standard Index is frequently used by international fund companies to measure their worldwide equity portfolios.

Source: Media Reports