S H Kelkar and Company Limited's arm to acquire 70% in Nova Fragranze S.r.1.

Keva Italy S.r.1 ("Keva Italy"), Italy and Creative Flavours & Fragrances S.p.A. ("CFF"), Italy, subsidiaries of S H Kelkar and Company Limited have entered into an agreement for acquisition of 70% equity stake of Nova Fragranze S.r.1. ("Nova"), Italy on April 07, 2021. Keva Italy and CFF shall be acquiring 28% and 42% stake respectively of Nova. The effective date of acquisition shall be April 01, 2021 as per the agreement.

Incorporated in year 1992, Nova is an Italy-based company specialized in the fragrance development and marketing with focus on premium customers in hair care/beauty care segments. The acquisition would enable broadening of the group's fragrance business in Italy.

The consideration to be paid for acquisition of 70% stake is Euros 1.52 million. The acquisition is planned to be funded from internal resources. No additional debt is envisaged to be taken on.

Depending on the Nova's business performance in next 3 years, the Company may decide on acquiring remaining 30% through one of its aforementioned subsidiaries in next 3 years. Requisite approvals and consents in connection with the acquisition have been obtained.

Shares of S H Kelkar and Company Ltd was last trading in BSE at Rs.116.3 as compared to the previous close of Rs. 118.25. The total number of shares traded during the day was 20951 in over 448 trades.

The stock hit an intraday high of Rs. 120 and intraday low of 116. The net turnover during the day was Rs. 2479796.

Source : Equity Bulls

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