Kesoram Industries slides 8% on profit booking as co hives off tyre biz

Since November 13, post-September quarter results (Q2FY19), the stock has climbed 61 per cent from Rs 60 to Rs 97 (as of Tuesday's close) against 2.8 per cent rise in the S&P BSE Sensex

Shares of Kesoram Industries dropped as much as 7.8 per cent to Rs 89.60 in the early morning trade on BSE as the investors booked profit after the company said it will spin off its tyre business into a separate entity, which will then become a publicly-traded company.

The board of directors of the company at its meeting held on Tuesday approved the proposal to demerge the tyre business into a new entity, Birla Tyres Ltd., Kesoram Industries said in a regulatory filing. “The demerger proposed is part of an ongoing exercise undertaken by Kesoram over the past few months