Shares of Sintex Industries rallied as much as 7.8 per cent to hit intraday high of Rs. 78.60 after the company announced demerger of custom moulding and prefab businesses from the company to Sintex-BAPL Limited and Sintex Infra Projects Limited respectively.
Both Sintex-BAPL Limited and Sintex Infra Projects Limited are wholly-owned subsidiaries of Sintex Plastic Technology.
Sintex Plastic Technology is a wholly-owned subsidiary of Sintex Industries, which is the flagship company of the Sintex group.
Shareholders of Sintex Industries will get one equity share held in
Sintex Plastics Technology upon demergers against one share held.
The transaction is expected to unlock value of shareholders by separating various business in different entities, Sintex Industries said.
As of 11:25 a.m., Sintex Industries traded 6 per cent lower at Rs. 77.25, outperforming the Nifty which was down 0.1 per cent.
Source : profit.ndtv.com