Greenlam Industries shares surge 8 per cent after acquisition of Bloom Dekor's laminate manufacturing facility

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Greenlam Industries shares surge 8 per cent after acquisition of Bloom Dekor's laminate manufacturing facility

After the firm acquired Bloom Dekor Limited's laminate manufacturing facility for Rs 36 crore, Greenlam Industries' shares went up over 8 per cent.

Greenlam Industries shares hit a new intraday high of Rs 345.05, rising 8.17 per cent on the BSE. The stock was close to 319 and opened 2.05 per cent higher at Rs 325.55 compared to the previous close of Rs 319.

Greenlam Industries' stock trades higher than the 5 day, 20 day and 200 day moving averages, but lower than 50 day and 100 day moving averages.

In a year, the stock has gone up 41.02 per cent, but lost 7.55 per cent in 2022.

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The firm's market cap rose to Rs 3,956 crore. The total of 7,157 shares changed hands on the BSE, with a turnover of Rs 24.08 lakh. The firm's market cap rose to 3,956 crore.

With this acquisition, Greenlam will now have four strategically located laminate manufacturing facilities in India, in Behror Rajasthan Nalagarh Himachal Pradesh Naidupeta Andhra Pradesh - Under Construction and now Prantij Gujarat This acquisition will strengthen Greenlam's lead position in the laminate industry with a total capacity of 24.521 million sheets.

Greenlam Industries is one of the top 3 laminate manufacturers in the world.

Manufacturing has always been the heart of Greenlam Industries operations, according to Saurabh Mittal, Managing Director, Greenlam Industries. With the acquisition of Bloom Dekor's manufacturing facility, we will strengthen our market leadership in laminates and penetrate into the mass market segment, which forms a significant share of the overall category. This move shows the company's vision of manufacturing world-class surfacing products. On June 20, 2022, the company also announced the issuance of fresh equity shares on preferential basis to the extent of Rs 195 crore.

Greenlam is well poised to embark on the journey to the Next Orbit after the announcement of capex to invest Rs 950 crore over 2 years, to set up of third Laminate plant and entry into Plywood and Particle Board business, along with fund raise and this acquisition.