Share of Somany Ceramics gained 2% during the intraday session of 23 August after the company announced that it has entered into a Joint Venture (JV) to operate Cerapro Nepal and acquire a 30% stake.

The said JV with Cerapro is to establish a tile manufacturing facility in Nepal for making wall and floor tiles products in Nepal and selling them after that.

Upon meeting the conditions stated in the agreement, the company plans to subscribe to 3 million equity shares, which amounts to 30% of Cerapro Nepal’s issued share capital.

The ownership distribution between Somany Ceramics and other shareholders will be 30:70.

For the April-June quarter of the current fiscal year, Somany Ceramics posted a 5% YoY increase in its consolidated Revenue from operation to Rs 586.53 crore. The net profit saw a 29% YoY decrease to Rs 14.57 crore for the same quarter.

Initially, the company noted a slow demand during the first quarter of the current fiscal year. However, there has been a significant increase in demand in July 2023.

The company has also indicated that it can raise its ownership in Cerapro Nepal to 50%.

At 10:30 am, the shares of Somany Ceramics were trading at Rs 694.40 or 0.75 above its previous close on NSE.