Shares of Rain Commodities closed at Rs. 39.4, down by Rs. 1.85.
The stock came under selling pressure from investors who seemed concerned if Rain Commodities, with a market capitalisation of Rs. 1,376 crore (on Tuesday close) would be able to meet funds to acquire the German coal tar pitch maker.
Rain Commodities already has a debt of R3,500 crore. The company made a net profit of Rs. 29 crore for the quarter ended in June. It has a net cash of around Rs. 1,200 crore and could utilise that for the acquisition.
Rain Commodities, that produces and sells CPC, cement, co-generation of energy and trading of fuel-grade green petroleum coke, also has plans in India, US and China. It will acquire stake (100%) in Ruetgers from private equity firm Triton. Triton has 23 companies in its portfolio.