Clariant Chemicals (India) soared 7.80% to Rs 344.10 after the company sold its Masterbatch business to a subsidiary of PolyOne Polymers India for Rs 426 crore.
The board of directors unanimously approved the sale of Masterbatch business to PolyOne Polymers India or its affiliate in India, on a going concern basis by way of slump sale, subject to the approval of the shareholders by way of special resolution through postal ballot and all other applicable statutory approvals, Clariant Chemicals (India) said in its filing.The business unit had contributed Rs 282.82 crore revenue in the financial year 2018-19, which is 29% of the total revenue of Clariant and EBIT contribution was Rs 4.57 crore.
The sale of unit is aligned with the global strategy of the parent company, Clariant said.
PolyOne Polymers India is a wholly owned subsidiary of PolyOne Corporation, a premier provider of specialized polymer materials, services and solutions. The filing was made during market hours today, 19 December 2019.
The S&P BSE Sensex was up 49 points or 0.12% to 41,607.45.
On the technical front, the stock's RSI (relative strength index) stood at 53.360. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
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The stock was currently trading above its 50-day moving average (DMA) placed at Rs 304.92 as well as above its 200 DMA placed at Rs 311.68. Both these levels would act as a support in the near term.
On a standalone basis, Clariant Chemicals (India) reported a net profit of Rs 13.34 crore in Q2 September 2019 as against a net profit of Rs 3.67 crore in Q2 September 2018. Net sales gained 6.1% to Rs 272.13 crore in Q2 September 2019 over Q2 September 2018.
Clariant Chemicals (India) is a manufacturer and seller of specialty chemicals. The firm has classified its range of products into two business segments: pigments and colors, and dyes and specialty chemicals. The pigments and colors segment includes pigments, pigment preparations, additives and masterbatches.
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