Outcome of Board Meeting
Awaiting price reaction for this filing.
The board, meeting on June 12, 2025, approved the sale of shares of its material subsidiary Hindusthan Speciality Chemicals Limited (HSCL) to DCM Shriram Limited for a total consideration of Rs. 219.38 crores, including adjustment of term debt. HSCL is a loss-making unit, reporting a negative net worth of Rs. 760.61 lacs and a loss after tax of Rs. 2,845.91 lacs for FY25, though it contributed about 50% of consolidated revenue (Rs. 27,467.96 lacs out of Rs. 54,842.73 lacs). The buyer is not related to the promoter group and the deal is not a related-party transaction. The transaction is subject to shareholder approval via a special resolution through postal ballot and is expected to be completed by August 31, 2025. Post-completion, HSCL will cease to be a subsidiary of the company.
For shareholders, this is a strategic divestment that removes a loss-making, net-worth-negative subsidiary from the books while bringing in Rs. 219.38 cr of cash. However, since HSCL contributed around half of consolidated revenue, the top line will shrink meaningfully after the sale, even though profitability may improve. The stock may react based on how the proceeds are deployed — debt reduction or new investments would be viewed positively.