Sintex Industries rose 6.99% to Rs 78.05 at 9:33 IST on BSE after the company said that its board approved demerger of custom moulding business and prefab business from the company.
The announcement was made after market hours yesterday, 29 September 2016.Meanwhile, the BSE Sensex was down 23.44 points, or 0.08%, to 27,804.09.
On BSE, so far 8.11 lakh shares were traded in the counter, compared with average daily volume of 9.09 lakh shares in the past one quarter. The stock hit a high of Rs 78.50 and a low of Rs 74.70 so far during the day. The stock hit a 52-week high of Rs 106.45 on 15 October 2015. The stock hit a 52-week low of Rs 62.36 on 12 February 2016. The stock had underperformed the market over the past 30 days till 29 September 2016, falling 2.67% compared with 2.20% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 11.36% as against Sensex's 2.51% rise.
The mid-cap company has equity capital of Rs 52.34 crore. Face value per share is Re 1.
Sintex Industries said that its board approved the composite scheme of arrangement for the demerger of the 'custom moulding business' and the 'prefab business' from Sintex Industries to Sintex-BAPL and Sintex Infra Projects, respectively, each a wholly owned subsidiary of Sintex Plastics Technology. The proposed arrangement will streamline various businesses developed by the group, thereby creating focused leadership and management attention. The scheme also involves issuance of equity shares of Sintex Plastics Technology to the equity shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of Sintex Plastics Technology upon demergers against one equity share held in Sintex Industries and listing of these equity shares of Sintex Plastics Technology on the BSE and the NSE. The transaction is expected to unlock value of shareholders by separating various businesses in different entities.
Sintex Industries' consolidated net profit rose 11.45% to Rs 76.03 crore on 16.48% growth in net sales to Rs 1695.25 crore in Q1 June 2016 over Q1 June 2015.
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Sintex Industries is a dominant player in the plastics and textile business segments.
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