JK Tyre & Ind board okays merger with Cavendish Industries; stock gains 3%: JK Tyre & Industries share price
Source: Business Standard
JK Tyre & Industries stock gains: Shares of tyre manufacturer JK Tyre & Industries (JK Tyre) sored as much as 2.50 per cent to hit an intraday high of Rs 452.40 per share.
The uptick in the JK Tyre & Industries share price came after the company’s board approved the merger with Cavendish Industries. Cavendish Industries is engaged in developing, manufacturing, marketing and distributing automotive tyres, tubes and flaps.
In an exchange filing, JK Tyre & Industries said, “We wish to inform that the Board of Directors of the Company (“the Board”) at its meeting today, i.e. September 16, 2024, has considered and approved the draft Scheme of Amalgamation of Cavendish Industries Limited (“Transferor Company”) with the Company and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 (“Act”) (“Scheme”).”
However, the Scheme is, inter alia, subject to receipt of approval from the statutory, regulatory and customary approvals, including approvals from the BSE Limited, the National Stock Exchange of India Limited (collectively referred to as “Stock Exchanges”), jurisdictional National Company Law Tribunal (NCLT) and the shareholders and creditors (as applicable) of the companies involved in the Scheme, the company said.
Q1FY25 highlights
The tyre makers’ profit after tax (PAT) rose 37.4 per cent year-on-year (Y-o-Y) to Rs 211.4 crore in the June quarter of FY25. JK Tyre & Industries’ revenue from operations, however, declined 2.1 per cent Y-o-Y to Rs 3,639.1 crore.
Sequentially, the company’s PAT grew 24.9 per cent while the revenue declined 1.6 per cent.
JK Tyre & Industries, the flagship company of the JK Group, is led by Raghupati Singhania, its chairman and managing director. As one of India’s leading tyre manufacturers and among the top 25 globally, JK Tyre offers a diverse range of products. Its portfolio caters to various segments, including trucks and buses, light commercial vehicles, passenger cars, multi-utility vehicles, and tractors.
The market capitalisation of JK Tyre is Rs 11,397.53 crore, according to Bombay Stock Exchange (BSE). The 52-week high of JK Tyre is Rs 554.35 apiece while its 52-week low is Rs 255.05 per share.
First Published: Sep 17 2024 | 1:27 PM IST
