Sintex spurts 7% as board decides to demerge biz, list Sintex Plastics Technology

NEW DELHI: Shares of Sintex Industries shot up over 7 per cent in Friday’s trade after the company said that its board has approved the composite scheme of arrangement for the demerger of the 'custom moulding business' and the 'prefab business' from Sintex Industries to Sintex-BAPL and Sintex Infra Projects, respectively,

Following the development, the stock jumped 7.60 per cent to hit a high of Rs 78.50 on BSE.

The two entities are a wholly-owned subsidiary of Sintex Plastics Technology, the company said.

In a filing to BSE, Sintex said, “The proposed arrangement will streamline various businesses developed by the group, thereby creating focused leadership and management attention. The scheme also involves issuance of equity shares of Sintex Plastics Technology to the equity shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of Sintex Plastics Technology upon demerger.”

Shares of Sintex Plastics Technology will soon get listed on the BSE and the NSE.

The transaction is expected to unlock value of shareholders by separating various businesses in different entities, the company said.