Dhunseri Tea is seeing some unusually high volumes on the counter – volumes are up over 47-times and the stock price skimmed the 20% of the day at Rs.266.15 and is currently trading 16% up at Rs.257 levels. Its 52-week high is at Rs.358.
Th company is engaged in manufacture and sale of tea, with 8 Tea Estates and 10 Tea Factories in Assam. It also has 2 Tea Estates in Malawi where plantation of Tea and Macadamia are being undertaken. It sells tea, mainly in Assam under the name of ‘Chhote Lal’.
Yesterday evening, the company announced that it has signed an MoU with Apeejay Tea for acquisition of the two tea estates located in Tinsukia District in the State of Assam for a total consideration of Rs. 109 crore.
The two estates are - Budlabeta Tea Estate (1491 hectares) and Hapjan Tea Estate (1485 hectares). Both together produce around 3.1 million kg.
Last month, it had acquired four tea estates from Warren Tea, again in Assam and with these deals, its total production will now go up to 14.6 million kgs.
At a time when many are seen exiting the business or facing financial duress, this move by Dhunseri to acquire estates will give it a huge share of the pie, especially in Assam.