Binani Inds surges on cement biz stake sale plan

The board has given in-principle approval to divest its holding in subsidiary firm Binani Cement by up to 40%.

Binani Industries has surged 10% to Rs 144 in opening deals after its Board gave an in-principle approval to divest its holding in subsidiary firm Binani Cement by up to 40%.

"The Board of Directors of the company at its meeting held on December 24, 2012, inter alia, has approved "in-principle" to divest out of its holding in Binani Cement (BCL), a subsidiary of the company, up to 40% of the paid-up share capital of BCL," Binani Industries said in a filing to the BSE.

Meanwhile, the board also approved to set up a wholly owned subsidiary in Singapore. The company has formed a Committee of Directors "to approve other terms including investor rights, funding schedule and the price" at which the stake in Binani Cement will be divested to the investors, it added.

The stock opened at Rs 139 and hit a 52-week high of Rs 158 on the NSE. A combined 417,734 shares have changed hands on the counter on both the exchanges.