Hindustan Composites to sell Friction Business to Rane Madras for 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 selling its Friction Business to Rane (Madras) Limited for 370 Crore cash on a slump sale basis. Friction Business makes up 84 percent of company revenue at 315 Crore in FY26. Deal needs shareholder approval via postal ballot and is expected to close by 30 September 2026. Buyer is not a related party. Company says deal unlocks value, strengthens balance sheet, is expected to be EPS-accretive, and part of proceeds may be returned via special dividend.

Likely market impact

Major divestment of 84 percent revenue business. Likely EPS-accretive, special dividend possible from proceeds. Subject to shareholder approval.