Kalpataru Power Transmission (KPTL), as well as JMC Projects are doing very well in today’s market which has bounced back sharply.
KPTL, on 19th Feb had announced merger of its JMC, its subsidiary (KPTL holds 68%), into itself. Shareholders of JMC Projects will be issued one equity share of KPTL for their four shares (4:1 ratio) under the all-equity merger.
The merger is expected to result in Rs.100 crore of cost synergies in overheads for the combined entity. The merger is expected to be completed by end of FY22.
JMC Projects is currently up 4.5% at Rs.90.50 while KPTL rose 3% to Rs.402.80 and both remain strongly in the green.