Sintex Industries shares gained as much as 7.61 per cent on Friday after the board of the company approved demerger of custom moulding business and prefab business from Sintex Industries to Sintex-BAPL Ltd and Sintex Infra Projects
Sintex Industries shares gained as much as 7.61 per cent on Friday after the board of the company approved demerger of custom moulding business and prefab business from Sintex Industries to Sintex-BAPL Ltd and Sintex Infra Projects, respectively, each a wholly owned subsidiary of Sintex Plastics Technology. At 9.44 am, shares of Sintex Industries were trading 6.85 per cent up at Rs 77.95. The scrip opened the day at Rs 74.90 and has touched a high and low of Rs 78.50 and Rs 74.70, respectively, in trade so far. Later, stock price of the company ended 7.40 per cent up at Rs 78.35.
The transaction is expected to unlock value of shareholders separating various businesses in different entities. As per the scheme, Sintex Industries shareholders will recieve shares of Sintex Plastic Technology.
“The scheme also involves issuance of equity shares of Sintex Plastic Technology to the equity shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of Sintex Plastic Technology upon demerger against one equity share held in Sintex Industries and listing of these equity shares of Sintex Plastic Technology on the BSE and NSE,” it added.
For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 76.03 crore, up 11.45 per cent, against Rs 68.22 crore in the corresponding quarter a year ago. Consolidated net sales of the company increased by 16.48 per cent year-on-year to Rs 1695.25 crore for the quarter under review against Rs 1455.36 crore in the same quarter previous year.
In the past one year, shares of the company have fallen 28.90 per cent to Rs 72.95 till September 29, whereas BSE Sensex gained 8 per cent during the same period.