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Century Textiles & Industries Ltd (CTIL) has denied reports that it is restructuring its businesses and is merging its cement business with UltraTech Cement Ltd, belonging to the Aditya Birla group.
Another Aditya Birla group company Aditya Birla Nuvo Ltd has also termed as ‘not true’ the news report that the textile division of CTIL is to be merged with it.
The denial of the news report led to both the stocks - CTIL and ABNL paring much of their gains about an hour before the market is to close for the day.
In its response to the clarification sought by the BSE on the news report that the BK Birla group company Century is planning to merge its cement business with UltraTech owned by his grandson Kumar Mangalam Birla, CTIL said that the reports ‘are not correct, hereby denied & should be ignored’.
Responding to a query from the exchange about reports of the textile division of CTIL to be merged with Adiya Birla Nuvo Ltd, the latter said the media report was a ‘mere speculation’ and said it ‘is not true and should be ignored’.
Century Textiles shares were trading at ₹747.60, a gain of ₹32.80, on the NSE. The stock, after opening at ₹731, touched a high of ₹774.90 before paring much of its gains. The counter witnessed a trading volume of 68.29 lakh shares. The stock is already trading at a high valuation. In the quarter ending Dec 2014, the company posted revenue of ₹1847.57 crore and posted a net loss of ₹63.58 crore. The EPS was in the negative (- ₹6.83) in the Dec 2014 quarter.
Shares of Aditya Birla also shed much of the gains it made early in the day. It was trading at ₹1627.80, a gain of ₹14.30. The stock had touched a high of ₹1675.05.
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