Shares of Orient Paper and Industries (OPIL) today fell by nearly 3 per cent after the company said it will demerge its consumer electric division.
The stock went down 2.76 per cent to close at Rs 77.40 on BSE. During the day, it lost 5.15 per cent to Rs 75.50.
At NSE, shares of the company fell 2.83 per cent to end at Rs 77.20.
In terms of volume, 5.29 lakh shares of the company changed hands on BSE and over 23 lakh shares were traded on NSE during the day.
The board of the company, in a meeting held yesterday, gave "its in-principle approval for the vertical demerger of its consumer electric division", OPIL said in a statement.
It further said this will "facilitate both paper and consumer electric businesses to focus on their core competencies and to pursue their independent strategies".
The company would also issue fresh equity in the form of a rights issue worth Rs 50 crore to reduce debt and for general corporate purposes.
OPIL, which has manufacturing capacity of about 85,000 tonnes of paper, also produces fans, lightings, appliances and switch gears in the consumer electric segment.
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