 "HSIL")
Shares of HSIL hit a new high of Rs 288.70, up 8 per cent in Tuesday’s intra-day trade. The stock has rallied 24 per cent in two days on the BSE after the company announced divesting its building products division for Rs 630 crore.
At 11:20 am, the stock was up 6 per cent, as compared to a 0.31 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more-than-doubled with a combined 1.4 million shares having changed hands on the NSE and BSE. In the past one month, the stock has zoomed 47 per cent, against a 7.5 per cent rise in the benchmark index.
HSIL on Saturday announced that its board approved the divestment of its building products division to Brilloca, a wholly owned subsidiary of Somany Home Innovation Limited (“SHIL”) in a slump sale transaction for a cash consideration of Rs 630 crore, subject to regulatory approval. With the proposed transaction, the building products division’s entire operating facilities will be transferred to Brilloca.
The cash proceeds of Rs 630 crore will be utilized towards the pre-payment of existing bank borrowings, which will further strengthen the HSIL balance sheet and create capital to further expand its packaging business. Going forward, HSIL will completely focus on the expansion of its packaging business and capitalize on both organic and inorganic opportunities, the company said.
Its management said this transaction will have a transformative impact on the market positing and growth prospects of HSIL. The company will emerge as a focused packaging company, well-positioned to implement its strategic plans to drive the packaging business and continue to unlock value for all stakeholders.
HSIL is India’s leading Packaging Products Company that manufactures and markets various packaging products, including glass containers and Polyethylene Terephthalate (PET) bottles, products & security caps, and closures.
