Outcome of Board Meeting
Awaiting price reaction for this filing.
The Board of Hindusthan Urban Infrastructure Limited, at its meeting on 12 June 2025, approved the sale of its shares in material subsidiary Hindusthan Speciality Chemicals Limited (HSCL) to DCM Shriram Limited. The total consideration is INR 219.38 Crores, which includes adjustment of term debt as per the share purchase agreement. HSCL is a significant part of the company, contributing about 50% of consolidated revenue in FY24-25, but it is loss-making with a negative standalone net worth of about Rs. 7.6 Crores and a standalone loss after tax of Rs. 28.46 Crores in FY24-25. The sale is subject to shareholder approval via a Special Resolution through Postal Ballot and is expected to be completed by 31 August 2025. Once completed, HSCL will cease to be a subsidiary of the company.
This is a major divestment for shareholders to evaluate: HSCL accounts for roughly half of consolidated revenue but is a drag on profitability with losses and negative standalone net worth, so exiting could simplify the business and potentially improve margins. Shareholders will get a postal ballot vote, and the headline Rs. 219 Cr figure includes debt adjustment, meaning actual net cash inflow may be smaller.