Members approve sale of Friction Business to Rane (Madras) for INR 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

+1.8%Reaction day

₹416.50

prior close

₹416.50

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+0.4%+1.4% vs market

Auto Components & Equipments peers, median of 117sector-0.1%+1.9% vs sector

On the reaction day the stock moved 1.4 pts more than Nifty Microcap 250 and 1.9 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

-0.9

10m

-0.8

15m

+0.2

30m

+0.5

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

+1.8+0.4+1.4-0.1+1.9

Next day

-1.1+0.5-1.6-0.4-0.6

-1.5+0.6-2.2-0.2-1.3

-0.8+0.7-1.6-0.1-0.8

-1.8+1.1-2.9+0.5-2.3

-2.0+0.5-2.6-0.3-1.8

-0.9+1.3-2.2-0.2-0.7

15d

-3.8+0.5-4.4-2.1-1.7

-8.4-0.8-7.6-4.0-4.4

+5.9-0.9+6.8-3.6+9.5

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UpDownMarket · Nifty Microcap 250Sector · Auto Components & Equipments peers, median of 117Pending

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

AI summary

Shareholders approved sale of Hindustan Composites' Friction Business to Rane (Madras) Limited for INR 370 Crore cash via slump sale. Friction unit contributed 84% of company turnover (INR 315 Crore of INR 375 Crore) and 7.5% of net worth. Closing by 30 Sept 2026. RML is an unrelated third party. Proceeds to fund investments and a likely special dividend. Expected EPS-accretive.

Likely market impact

Major divestment of 84% revenue business unlocks value and supports special dividend, but business shrinks significantly. EPS expected accretive.