Mandhana Ind dives 49% in 5 sessions on spin off decision

NEW DELHI: Continuing its losing streak, shares of Mandhana Industries hit the lower circuit of 10 per cent on Thursday after the company announced that it was in the process of demerging the ' Being Human' retail business into a separate company — Mandhana Retail Ventures.

There were concerns that the stock may not offer much value to shareholders post the demerger of its retail business.

Mandhana Industries has a licensing arrangement with Being Human – The Salman Khan Foundation. The company pays royalties to the foundation, which is used to support education and healthcare initiatives of the foundation.

Following the development, the stock slumped 10 per cent to Rs 144.25 on BSE as soon as the opening bell rang . The stock had fallen 10 per cent in the previous session and 20 per cent each in the preceding two sessions.

The retail business had operating margin before depreciation (Ebidta margin) of as high as 25 per cent and contributed 10-15 per cent of the consolidated sales. The Ebidta margin of the remaining business was only 14 per cent, the ET reported.