Hindustan Composites to sell Friction Business to Rane Madras for 370 Cr

Core Business DivestedStrategic Transactions View source PDF

HINDCOMPOS · price

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+8.0%1-day move

₹424.00

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₹450.00

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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.