Shares of Rain Industries
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,” Rain Industries 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, Rain Industries 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.
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