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Kesoram Industries to hive off tyres business, list new entity

Press Trust of India  |  New Delhi 

BK Birla group firm said Tuesday it will spin off its tyres business into a separate entity, which will become a publicly traded company.

The board of directors of the company at its meeting held Tuesday approved the proposal to demerge the tyres business into a new entity, Ltd, said in a regulatory filing.

"The demerger proposed is part of an ongoing exercise undertaken by Kesoram over the past few months in further realigning and recalibrating operations," it said.

For BTL, the company said the move would open new growth vistas as it looks at opportunities with renewed vigour, it added.

"The process is expected to act as a stimulant for further investments into BTL," the filing said without elaborating.

Upon grant of requisite approvals, BTL will also become a listed company with its shareholding pattern mirroring Kesoram, it said.

As on quarter ended September 2019, promoters held 53.18 per cent stake in and public shareholders had 46.82 per cent stake.

"With the proposed spin-off, Kesoram's focus on the both its businesses -- and tyre will get even further sharpened and pave the way for their robust growth," it added.

In the first half of the ongoing fiscal, the company's tyre business had clocked a revenue of Rs 709.6 crore, while that of stood at Rs 1,148.23 crore.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 18:50 IST
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