Rain Commodities, which produces cement, calcined petroleum coke and power, today said it will hive off its cement operations to another subsidiary.
It also posted a nearly 10 per cent jump in consolidated net profit at Rs 443.84 crore for the year ended December 31.
The company's board has approved "hiving off the cement operations to a wholly-owned subsidiary to enable possible induction of join venture partners in the future and to pursue value-accretive acquisitions," Rain Commodities said in a filing to the Bombay Stock Exchange.
Besides, the board also approved the creation of a global holding company in the US for calcined petroleum coke business to enable raising of equity funds, through an IPO, for general corporate uses and repayment of debt, it said.
The company reported net sales of Rs 3,633.82 crore for the year ended December 31 compared to that of Rs 4,454.72 crore in the previous year.
It has recommended a dividend of Rs 3.70 a share for the year 2009.
On standalone basis, the firm posted a net profit of Rs 154.67 crore for the year ended December 2009, against Rs 85.06 crore of the year ago period.
Shares of Rain Commodities settled at Rs 225.60 on BSE, up 2.01 per cent from its previous close.
