HSIL Limited ("HSIL"), India's leading packaging company, in its Board meeting held today approved the divestment of its Building Products division to Brilloca Limited ("Brilloca"), a wholly owned subsidiary of Somany Home Innovation Limited ("SHIL") in a slump sale transaction for a cash consideration of ₹630 crore. With the proposed transaction, the Building Products division's entire operating facilities of HSIL will be transferred to Brilloca.
- Cash proceeds of ₹630 crore will be utilized towards the pre-payment of existing bank borrowings which will further strengthen the HSIL balance sheet and create capital to further expand its packaging business
- Going forward, HSIL will completely focus on the expansion of its packaging business and capitalize on both organic and inorganic opportunities
- E&Y acted as the structuring advisor and Deloitte as the independent valuer
- The transaction is subject to shareholder and other statutory approvals as applicable. The transaction is expected to close by 31st March 2022 or such date as mutually agreed between HSIL and Brilloca
Commenting on the transaction, Dr. Rajendra Kumar Somany, Chairman and Managing Director, HSIL: "This transaction will have a transformative impact on the market positing and growth prospects of HSIL. The company will emerge as a focused packaging company, well-positioned to implement its strategic plans to drive the packaging business and continue to unlock value for all stakeholders. The cash proceeds will be used to pre-pay existing bank borrowings and increase cash reserves."
Shares of HSIL Limited was last trading in BSE at Rs. 233.35 as compared to the previous close of Rs. 233.55. The total number of shares traded during the day was 22531 in over 2034 trades.
The stock hit an intraday high of Rs. 237.90 and intraday low of 231.50. The net turnover during the day was Rs. 5288035.00.
Source : Equity Bulls