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    Kamdhenu Ventures lists on stock exchanges after demerger, shares rally 5% on Day One

    Synopsis

    The new business structure affirms the group’s focused approach towards the paints business. The demerger will lead to operational flexibility and facilitate businesses to independently pursue their growth plans through organic & inorganic routes," the company said in a BSE filing.

    Kamdhenu Ventures lists on stock exchanges after demerger, shares rally 5% on Day OneETMarkets.com
    Shares of Kamdhenu Ventures (Kamdhenu Paints) made their debut on the bourses on Tuesday, getting listed both on the NSE and the BSE. On the first day of listing, the stock hit a 5% upper circuit at Rs 178.5.

    Kamdhenu Ventures is the demerged paints business arm of Kamdhenu Limited. Under the demerger, parent company Kamdhenu Limited issued one equity share of Kamdhenu Ventures against every existing share of the former.

    "The new business structure affirms the group’s focused approach towards the paints business. The demerger will lead to operational flexibility and facilitate businesses to independently pursue their growth plans through organic & inorganic routes," the company said in a BSE filing.

    At 1.41 pm, shares of Kamdhenu, the parent company of Kamdhenu Ventures, were trading 4.1% higher at Rs 434.5. In the last six months, the stock has given a multibagger return of 111%.

    The paints division was separated from the steel business of the group last year for better management focus and operational flexibility.

    “The listing of Kamdhenu Ventures (Kamdhenu Paints) marks the beginning of a new chapter in the company's history. The demerger activity will help streamline business initiatives of the group and create shareholder value," said Satish Kumar Agarwal, Chairman of Kamdhenu Group.

    "With a wide presence and substantial network across India, the company aims to strengthen its foothold in the paint industry. For FY22, paints revenue stood at Rs 241 crore and is expected to reach a turnover of Rs 1,000 crore in five years on account of increased discretionary spend, urbanisation and positive macro tailwinds,” Agarwal added.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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