Mandhana Industries gains on Mandhana Retail deal with Being Human

The stock locked in upper circuit of 5% at Rs 101 on the BSE.

Mandhana Industries is locked in upper circuit of 5% at Rs 101 on the BSE after the company announced that 'Being Human' the Salman Khan Foundation, has executed an agreement with Mandhana Retail Ventures Limited (MRVL).

MRVL is the resulting company pursuant to scheme of demerger of the retail business of the Mandhana Industries.

“Henceforth, MRVL is the exclusive licensee to market, distribute and sell the products under the trade mark of brand “Being Human”, Mandhana Industries said in a statement.

On execution of new agreement with MRVL, the earlier agreement executed between the company and the Foundation stands terminated, it added.

The board of directors of Mandhana Industries on November 22, 2014, had approved the demerger of the company’s retail and trading business of the brand Being Human to MRVL.

The shareholders of Mandhana Industries will get 2 (two) equity shares of MRVL to every shareholder holding 3 (three) equity shares of the company.

The stock nearly doubled from its 52-week low of Rs 46.90 hit on July 25, 2016 during intra-day trade. Earlier, in just four months, it tanked 86% from its record high of Rs 345 touched on March 22, 2016 in intra-day deal.

As of June 30, 2016, about 73% of the total promoter’s holdings pledged or otherwise encumbered, the shareholding pattern data shows.

Till 10:17 am, a combined 71,824 shares changed hands and there were pending buy orders for 1.52 million shares on the BSE and NSE.