Outcome of Board Meeting
Awaiting price reaction for this filing.
The Board of Directors of Hindusthan Urban Infrastructure Limited, at its meeting on June 12, 2025, approved the sale of its entire stake in material subsidiary Hindusthan Speciality Chemicals Limited (HSCL) to DCM Shriram Limited for a total consideration of INR 219.38 Crores (including adjustment of term debt). HSCL contributed about 50% of the company's consolidated revenue in FY24-25 but reported a loss of Rs. 28.46 Crores and had a negative net worth of Rs. 7.6 Crores as of March 31, 2025. The transaction is expected to complete by August 31, 2025, subject to shareholder approval via a Special Resolution through Postal Ballot. After the sale, HSCL will cease to be a subsidiary of the company. The buyer is not related to the promoter or promoter group, and the deal is not a related-party transaction.
This is a significant divestment that removes a loss-making, debt-heavy material subsidiary from the company's books, which could improve consolidated profitability and simplify the group structure. Shareholders will get to vote on the deal via postal ballot, and short-term stock reaction may depend on whether the sale price is viewed as fair relative to HSCL's contribution and financial condition.