Kesoram comes off 9% on tyre biz demerger

Shares of Kesoram Industries were in pain on Wednesday plunging by over 9 per cent as the company announced demerger of its tyre business in the wake of unsustainable debt.

In a statement, Kesoram said the company approved demerger of the tyre undertaking into a new entity, Birla Tyres Limited, in a major second round of restructuring.

The turnover of the demerged tyre division is Rs 1,453 crore, 39 per cent of its total company topline as of last fiscal. Approximately Rs 1,000 crore debt will get transferred to the demerged tyre firm.


The scrip closed 12.65 per cent down at Rs 84.90 while the benchmark Sensex fell 0.69 per cent to 35,884.41. It opened at Rs 97 on the BSE against its previous closing of Rs 97.20.