Friday June 29, 02:07 AM
Kesoram stock up on news of BK's new succession plan
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By Markets Bureau
BK Birla's decision to change his succession plan and transfer Kesoram Industries Ltd (KIL) to grandson Kumar Mangalam Birla, has seen the stock skyrocket in the bourses on Thursday. Following the announcement, the KIL stock shot up 14.42% in the intra-day trades and reached day's high of Rs 464 against the previous close of Rs 405.50. On the sidelines of annual general meeting (AGM) of Century Enka in Kolkata on Wednesday, BK Birla said, "Kumar will get all my major companies. Daughter Jayshree (Mohta) will be handed over Jay Shree Tea and Manjushree will given something. Kesoram is a giant and Kumar is the best person to guide it." Kesoram is the second largest company of the group. As per his previous plan, Kumar Birla was supposed to get Century Textiles and Century Enka, which figure among the front-ranking companies of the B K Birla group. Analysts are of the view that the move by BK Birla is in the right direction. "We expect this to bring synergies for Kesoram Industries with Grasim, Ultratech and Century Textiles combine and be part of the largest cement producer in the country. We expect PE re-rating following this announcement." The KIL stock settled 7.40% higher at the end of the day to close at Rs 435.50, gaining Rs 30.
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