Donear Industries soars 7% on OCM acquisition, retreats

NEW DELHI: Shares of Donear Industries jumped 7 per cent on Tuesday after the group said it has acquired Amritsar-based OCM Woolen Mills.

Without disclosing the size of the acquisition, the group said that the acquisition would enable it to expand its range of products to Indian consumers for all weather conditions and for all occasions.

Following the development, the stock soared 6.88 per cent to close the day at Rs 69.10 on BSE.

The move is seen helping OCM’s distributors, who generally witness lower sales during seasons other than winter, sell an additional range of products, especially Giza, Supima and wrinkle-resistant cotton fabric.

“Suiting is not just about wool alone, considering mere 25 per cent of the suiting fabric is now woollen. This acquisition will help us provide the complete range of suiting to Indian men — from poly-viscose, cotton and woolen blends,” Rajendra Agarwal, promoter of the Donear Group, told ET.