Janus Corporation Shares Surge 60% in Three Trading Sessions After Acquiring Forever Business Solutions

The stock price of Janus Corporation Ltd skyrocketed today, climbing 20% to reach its upper circuit limit at Rs 10.27 per share. This marks a significant increase from the previous closing price of Rs 8.56. The surge in share price was accompanied by a dramatic five-fold increase in trading volume on the BSE. The stock also touched a new 52-week high of Rs 10.27, while its 52-week low stands at Rs 3.60. This is the third consecutive day the stock has hit its upper circuit limit with heavy trading activity.

Janus Corporation Limited (JCL) is poised to expand its operations through a significant acquisition. The company is scheduled to deliberate and approve a major transaction in its board meeting. A key agenda item is the formal endorsement of a preliminary approval granted by BSE Limited for issuing and distributing 11.52 million equity shares on a preferential basis.

These newly issued shares will be allotted to both existing and new shareholders of Forever Business Solutions Private Limited (FBSPL) as compensation for acquiring their entire stake in the company. This share exchange deal values FBSPL at Rs 48 per share, resulting in a total transaction value of Rs 13.82 crores. Upon completion, FBSPL will become a wholly-owned subsidiary of JCL. The company’s board will also authorize the necessary paperwork to list and trade the newly issued shares.

Acquisition Details

The acquisition of FBSPL, an IT company with a turnover of Rs 4.99 crores in the financial year 2023, is classified as a related party transaction due to the involvement of JCL’s promoters in FBSPL’s ownership. By acquiring FBSPL, JCL aims to diversify its business into the IT sector. The transaction is subject to the regulations of the Securities and Exchange Board of India (SEBI) and is expected to be finalized within 15 days of obtaining all necessary approvals.

About Janus Corporation Ltd

Janus Corporation Ltd, a Mumbai-based company established in 1998, is a multifaceted enterprise operating in the construction, media, and consulting sectors. Specializing in civil construction, the company undertakes site development, land filling, fencing, and hoarding erection while also trading in essential construction materials like cement, iron, steel, sand, soil, and aluminium. Complementing these core activities, Janus Corporation offers media and consulting services, broadening its business scope. With a market capitalization of Rs 13.75 crore and a debt-free balance sheet as of March 2024, the company has showcased impressive growth, delivering multibagger returns of 185.8% from its 52-week low of Rs 3.60 per share.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.