Rain Inds surges 15% as arm completes sale of non-strategic subsidiaries

Shares of surged 15 per cent on Friday to hit a 52-week high of Rs 146 on the BSE after the company announced that its arm had completed sale of non-strategic subsidiaries for Rs 637 crore. The company said the consideration received from the sale of two subsidiaries will be utilized for repayment of debt and other general corporate needs.

“Rain CII Carbon LLC., a wholly owned step down subsidiary of the Company has completed the sale of its wholly owned subsidiaries namely RUTGERS Polymers Limited, Canada and Handy Chemicals (U.S.A.) Limited for an aggregate cash consideration of Rs 637.4 crore,” said in exchange filing.

The Company has decided to divest the stake in these two non-strategic subsidiary companies, as a part of its strategy to achieve sustainable growth, create value for all stakeholders and reduce debt. These companies are engaged in manufacturing and distribution of polynaphthalene sulfonates, under product-group naphthalene derivates, in advanced materials business segment, it said.

At 01:08 pm, was trading 14 per cent higher at Rs 145, as compared to 0.37 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped an over four-fold with a combined 11.6 million equity shares were changing hands on the NSE and BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link

Leave a Comment

Your email address will not be published. Required fields are marked *