Punjab Alkalies zooms to new high

Punjab Alkalies had closed yesterday at Rs.36.05 and today it opened almost 18% higher at Rs.43.25, which is a new high.

The stock has jumped up, reacting to the statement it issued yesterday after market closure that the government had approved divestment of 44.26 percent stake in company by Punjab State Industrial Development Corp (PSIDC). It is one of the largest manufacturers of caustic soda in India, with an installed capacity of about 99,000 tonnes per annum (tpa).

There is news that four companies have bid for this stake - Aditya Birla Chemicals (India) Pvt Ltd, Nirma Ltd, Punjab-based Kudos Chemie Ltd and a consortium of Al Shemail Garments & Perfumes Trading LLC (Lead member 90 per cent) & Avenue Chemicals (P) Ltd. Grapevine has it that it is most likely that the AV Birla group might get the stake and one can expect good valuations.

The dilution is expected to go through this time around as this is the fourth attempt by the Govt for stake sale.