Ducab is offering a significant premium to acquire the stake at Rs. 1.50 per share, according to an official statement. Godha Cabcon has a market cap of Rs 63.29 crore, according to exchange.
Godha Cabcon & Insulation shares today jumped 6 per cent after Dubai Cable Company (Ducab) showed interest in acquiring stake. Its shares traded at Rs 0.95 on NSE during afternoon trade. Godha Cabcon is a homegrown cable and conductor manufacturing company for the power transmission sector.
Ducab is the globally recognised leader in the wire and cable industry. It is the driving force behind a broad range of advanced energy and infrastructure projects across the Middle East, Asia, Australia, the Americas and Europe.
The development comes at time when the wire and cables market in India has seen s sharp uptick with rising in construction and manufacturing activities. As per the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI), India’s manufacturing sector activity moderated to a five-month low in September but remained strong.
The rebound in real estate sector with the RBI pressing the pause button on the rate hike has also contributed to the rise in demand for power cables. Godha Cabcon & Insulation , which manufacturer of cable and conductor producing products for power transmission sector, has said that Ducab is in talks to acquire a 22.5 per cent stake.
Ducab is offering a significant premium to acquire the stake at Rs. 1.50 per share, according to an official statement. Godha Cabcon has a market cap of Rs 63.29 crore, according to exchange.
“Ducab has expressed interest to acquire a substantial stake in Godha Cabcon. The proposed acquisition will be executed via a preferential issue,” the statement added.
Godha Cabcon has steadily gained a foothold in the conductors and wires industry. The company boasts a diverse product portfolio, including aluminum conductor, steel reinforced, armored and unarmored cables among others.