Piramal Entp hits a new high

Piramal Enterprises hit a new high today at Rs.1850, up 4% over yesterday’s close of Rs.1780.10. It has come off the high but remains firmly in the green.

The stock price is reacting to the company’s announcement that it plans to acquire 100% stake in US based company – Ash Stevens. This is to be acquired through the company’s US based wholly owned subsidiary.

This is to be acquired through an all-cash deal for a total consideration US$42.95 million or Rs.350 crore. This will be over and above an earn-out consideration of $10 million, to be paid over the next six months and it is to be completed by end of this month.

After acquiring Coldstream Labs in Kentucky and Torcan in Toronto, this will be Piramal’s third acquisition in North America.