Zuari Agro share climbs over 18% as firm to sell Goa fertiliser plant to Paradeep Phosphates

Share of Zuari Agro Chemicals surged over 18% intra day after the firm said its board has approved the sale of fertiliser plant at Goa and associated businesses of the company to Paradeep Phosphates Limited (PPL) for an enterprise value of $280 million.

Zuari Agro Chemicals touched an intraday high of Rs 108, rising 18.16% against previous close of Rs 91.40 on BSE.

The stock has gained after 2 days of consecutive fall.

The stock opened with a gain of 4.27% at Rs 95.30 on BSE. Zuari Agro Chem share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has risen 20.87% in one year and gained 3.73% since the beginning of this year.

Market cap of the firm rose to  Rs 432 crore on BSE. At 11:35 am, the micro cap share was trading 12.47% higher at Rs 102.80 on BSE.

"The Board of Directors of the company at its meeting held on February 22, 2021, approved the sale of the company's fertilizer plant in Goa and associated businesses of the company to Paradeep Phosphates Limited as a going concern, on a slump sale basis for an agreed enterprise value of USD 280 million as defined in the Business Transfer Agreement and for entering into necessary Business Transfer Agreement with PPL," the company said in an exchange filing.

The business transfer agreement is expected to be executed in February 2021.