HINDCOMPOSBSEHindustan Composites LtdHighNeutral
Announced Tue, 30 Jun · 20:00 IST

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

Core Business DivestedStrategic Transactions View source PDF

HINDCOMPOS · price

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Price reaction · full curve 14 horizons · vs prior close
+8.0%1-day move
₹424.00
prior close
₹450.00
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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.