Bajaj Hindusthan Sugar rose 2.47% to Rs 13.70 at 14:40 IST on BSE after the company said that its board approved selling co-generation power business for approximately Rs 1800 crore.
The announcement was made during trading hours today, 20 December 2016.Meanwhile, the BSE Sensex was down 42.41 points, or 0.16%, to 26,332.29.
On the BSE, so far 11.81 lakh shares were traded in the counter, compared with average daily volumes of 3.41 lakh shares in the past one quarter. The stock had hit a high of Rs 14.74 and a low of Rs 13.05 so far during the day.
The stock hit a 52-week high of Rs 24.20 on 13 June 2016. The stock hit a 52-week low of Rs 12.65 on 12 February 2016. The stock had underperformed the market over the past 30 days till 19 December 2016, falling 10.27% compared with the 0.86% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 24.03% as against Sensex's 7.53% decline.
The small-cap company has equity capital of Rs 113.36 crore. Face value per share is Re 1.
Bajaj Hindusthan Sugar said that the board of directors of the company at its meeting held on 20 December 2016, considered approval of sale and transfer of co-generation power business of aggregating capacity of 449 megawatts (MW) located at 14 locations to Lalitpur Power Generation Company (LPGCL), a group company for a lumpsum consideration in cash of approximately Rs 1800 crore, as a going concern on slump sale basis in accordance with the business transfer agreement to be entered into with LPGCL.
Entire amount of cash consideration is proposed to be utilised by Bajaj Hindusthan Sugar towards advance repayment of its existing term debt. The proposed sale and transfer of co-generation power business will be subject to approval of members, lenders and all other statutory /regulatory authorities, the company said in a statement.
Bajaj Hindusthan Sugar reported net loss of Rs 137.71 crore in Q2 September 2016 as against net loss of Rs 280.17 crore in Q2 September 2015. Net sales rose 13% to Rs 850.08 crore in Q2 September 2016 over Q2 September 2015.
Bajaj Hindusthan Sugar is a sugar and ethanol manufacturing company.
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