Hind Composites to sell Friction Business to Rane Madras for Rs 370 Cr

Core Business DivestedStrategic Transactions View source PDF Explain this filing

HINDCOMPOS · price

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Price reactionminutes from the announcement price · days from the prior close

+9.3%Reaction day

₹424.00

prior close

₹450.00

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.2%+9.1% vs market

Auto Components & Equipments peers, median of 118sector+0.7%+8.6% vs sector

On the reaction day the stock moved 9.1 pts more than Nifty Microcap 250 and 8.6 pts more than its Auto Components & Equipments peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

+7.7

10m

+7.1

15m

+7.2

30m

+6.7

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

+9.3+0.2+9.1+0.7+8.6

Next day

+8.0+1.0+7.0+2.0+6.1

+5.7+0.7+5.0+2.1+3.6

+2.8+0.9+1.9+1.4+1.5

+2.7+0.2+2.5+1.2+1.5

+3.5-1.8+5.4-0.4+3.9

+3.4+1.4+2.0+1.0+2.4

15d

+1.9-0.6+2.5+0.5+1.4

+0.3+1.5-1.2+3.6-3.3

-4.5+4.5-9.0+3.5-8.0

-9.3+3.1-12.4+2.7-12.0

UpDownMarket · Nifty Microcap 250Sector · Auto Components & Equipments peers, median of 118Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

Hindustan Composites board approved sale of its Friction Business Undertaking (auto, railway and industrial friction material) to Rane (Madras) Limited on a slump sale basis for Rs 370 Crore cash. The Friction Business contributed 84 percent of company turnover (Rs 315 Crore) in FY26 but only 7.5 percent of net worth (Rs 69.5 Crore). Buyer Rane Madras is not a related party. Completion expected by 30 September 2026, subject to shareholder approval via postal ballot. Company plans to deploy proceeds towards investments and a special dividend.

Likely market impact

Core business divestiture, expected to be EPS-accretive. Proceeds to fund investments and a special dividend. Subject to shareholder approval via postal ballot.