Sintex Plastics Technology falls 5% on first day of listing

NEW DELHI: Sintex Plastics Technology on Tuesday plunged 5 per cent on Tuesday after being listed on the BSE at price of Rs 130.

The scrip shed 5 per cent to close the session at Rs 123.50 on the exchange.

The equity shares of Sintex Plastics Technology is listed on the exchange in the list of T group (Trade-for-Trade) of securities. The scrip will trade in this segment for 10 trading days.

Brokerage Edelweiss Securities value Sintex Plastics Technology stock at Rs 120 per share, which implies 17 times FY18E earnings. Thr brokerge though does not have an coverage on this stock.

The board of directors of Sintex Industries had on September 29 2016 approve the scheme of demerger of custom moulding and prefab business into Sintex- BAPL and Sintex Infra Projects respectively. Post the demerger scenario, two companies Sintex Industries and Sintex Plastics Technology were to carry the textile and spinning business and plastics business, respectively.

The record date for the scheme of demerger was May 26.