Ess Dee Aluminium surges on promoters’ stake sale buzz

MUMBAI: Shares of Ess Dee Aluminium, an aluminium packaging company, extended overnight gains on buzz that its promoters are planning to sell their entire stake to Australia-based Amcor.

The stock has been hitting 52-week highs after ET Now reported that the promoters of may sell their stake for a total company valuation of about Rs 2,000 crore.

According to ET Now sources, Amcor had initially entered into talks with Ess Dee Aluminium for Rs 100 crore annual manufacturing contract. However, after several rounds of discussions, the promoters of Ess Dee Aluminium are now exploring the idea of exiting the company.

The deal, if the stake sale happens, is likely to be at Rs 550-650 per share, which is a premium to the current market price.

The stock has surged over 60 per cent in less than a month on hopes that a stake sale would unlock value for shareholders.

At 12:10 p.m., the stock was at Rs 454, up 11.66 per cent, on the BSE. It touched a high of Rs 474.50 and a low of Rs 410.50 in trade today.