Sintex Industries trades post demerger of custom moulding biz

The stock soared 90% to Rs 34 from its opening level at Rs 17.90 on the NSE

Sintex Industries zoomed 85% to Rs 34.50 from its opening level of Rs 18.65 on BSE on back of heavy volumes. The stock has started trading ex-scheme of arrangement with effect from today .

Sintex Industries has fixed May 26, 2017 as the record date for the purpose of determination of entitlement for allotment equity shares as per the composite scheme of arrangement.

The company’s board, in September 2016, had approved a 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 (SPTL).

The scheme involves issuance of equity shares of SPTL to the shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of SPTL upon demergers against one equity share held in Sintex Industries and listing of these equity shares of SPTL on the BSE and NSE.

The transaction is expected to unlock value of shareholders by separating various businesses in different entities, Sintex Industries said in a press release.

Meanwhile, on Wednesday, May 24, 2017, Credit Suisse (Singapore) and Merrill Lynch Markets Singapore PTE, had collectively sold 6.3 million equity shares of Sintex Industries for an average price of Rs 104.62 on NSE, the bulk deals data shows. CLICK HERE TO READ FULL REPORT
 

On the National Stock Exchange (NSE), the stock soared 90% to Rs 34 after opening at Rs 17.90. It hit a low of Rs 16.15 on NSE and Rs 17.75 on BSE so far.

At 11:07 am, it  was trading at Rs 31.15. A combined 128 million shares have changed hands on the BSE and NSE.