Sintex Industries gallops on plan to divest stake in unit

Sintex Industries jumped 4.10% to Rs 43.20 at 12:51 IST on BSE after the company said it has decided to disinvest its entire stake in its wholly-owned subsidiary, Zep Infratech, to Khadayata Decor.

The company made the announcement during trading hours today, 26 March 2014.

Meanwhile, the BSE Sensex was up 99.21 points, or 0.45%, to 22,154.42.

On BSE, so far 11.47 lakh shares were traded in the counter, compared with an average volume of 15.13 lakh shares in the past one quarter.

The stock hit a high of Rs 43.35 and a low of Rs 41.85 so far during the day. The stock hit a 52-week high of Rs 58 on 7 May 2013. The stock hit a 52-week low of Rs 16.90 on 4 September 2013.

The stock had outperformed the market over the past one month till 25 March 2014, rising 20.12% compared with the Sensex's 5.77% rise. The scrip had also outperformed the market in past one quarter, rising 21.52% as against Sensex's 4.86% rise.

The small-cap company has an equity capital of Rs 31.31 crore. Face value per share is Re 1.

Sintex Industries announced that a committee of board of directors of the company at its meeting held on 26 March 2014, has decided to disinvest its entire equity stake in Zep Infratech, the wholly-owned subsidiary of the company, to Khadayata Decor.

On a consolidated basis, Sintex Industries' net profit rose 57.9% to Rs 84.72 crore on 3.1% decline in net sales to Rs 1376.13 crore in Q3 December 2013 over Q3 December 2012.

Sintex Industries is one of the leading providers of plastics and niche textile-related products in India. With global footprints spanning 9 countries, Sintex has a strong presence in the European, American, African, and Asian markets including countries like France, Germany and USA.

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