This Ashish Dhawan-owned stock has zoomed 50% in four days

Share of HSIL hit a new high of Rs 350.20, zooming 50 per cent in four days on the BSE after the company announced divesting its building products division for Rs 630 crore.

Shares of packaging company HSIL hit a new high of Rs 350.20, up 9 per cent in Thursday’s intra-day trade. The stock has zoomed 50 per cent in four days on the BSE after the company announced divesting its building products division for Rs 630 crore.

The company said the cash proceeds will be utilized towards the pre-payment of existing bank borrowings, which will further strengthen the HSIL balance sheet and create capital to further expand its packaging business. Going forward, HSIL will completely focus on the expansion of its packaging business and capitalize on both organic and inorganic opportunities, the company said.

HSIL is India’s leading Packaging Products Company that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures.

Investor Ashish Dhawan held 3.1 million equity shares or 4.79 per cent stake in HSIL as on December 31, 2021, the shareholding pattern data showed. Based on today’s high price, Ashish Dhawan networth in HSIL stood at Rs 108.52 crore.

In the past one month, the stock has rallied 77 per cent from levels of Rs 197, as compared to a 7 per cent rise in the S&P BSE Sensex. At 10:29 am; HSIL was up 4 per cent at Rs 336, as against a 0.61 per cent decline in the benchmark index. The trading volume at the counter more-than-doubled with a combined 2.4 million equity shares changing hands on the NSE and BSE.

HSIL on Saturday announced that its board approved the divestment of its building products division to Brilloca, a wholly owned subsidiary of Somany Home Innovation Limited (“SHIL”) in a slump sale transaction for a cash consideration of Rs 630 crore, subject to regulatory approval. With the proposed transaction, the building products division’s entire operating facilities will be transferred to Brilloca.