Gujarat-based Sintex Industries Ltd is picking up a 30% stake in Durha Constructions Pvt Ltd, a civil construction and mechanical construction contracting specialist. The deal includes an option whereby Sintex will take a majority stake in Durha at the time of deal closure, expected by the end of the current financial year.
Durha's revenues grew by 40% annually in the past two years and for the year ended March 31, 2010, it reported revenues of Rs 150 crore and an EBITDA of Rs 25.2 crore. The firm's current order book is worth Rs 750 crore. It is present in sectors like power, petrochemicals, cement and has worked on airport projects in Delhi and Hyderabad.
Sintex said, the acquisition would help the company grow and strengthen its monolithic and prefab business and also help build an active presence in the infrastructure sector, particularly EPC business. Sintex business includes building products, custom moldings, and textiles.
Sintex had revenues of Rs 3,281 crore and a profit after tax of Rs 325 crore with a debt-to-equity ratio of 1.14 for FY10. Besides its core business of plastic and textiles, Sintex is present in building materials, custom molding among others.
Sintex share price gained 6.77% today, trading at Rs 198.00 on the BSE at 1 pm today.