Hindustan Composites shareholders approve sale of Friction Business to Rane (Madras) for ₹370 Crore
Hindustan Composites shareholders approved the sale of its Friction Business Undertaking to Rane (Madras) Limited for ₹370 crore. The business contributed ₹315.04 crore in turnover (84% of total) and had a net worth of ₹69.52 crore. The sale is expected to complete by September 30, 2026.
The sale of a business unit contributing 84% of the company's turnover is a material event that will significantly alter the company's structure and future operations.
The sale of a significant business undertaking for a substantial amount, coupled with the rationale of enhancing shareholder value and strategic realignment, indicates a positive development for the company.
Hindustan Composites Limited announced that its members have approved the sale of its Friction Business Undertaking on a slump sale basis. This approval was obtained through a postal ballot process, with a special resolution passed as per Section 180(1)(a) of the Companies Act, 2013, and Regulation 37A of SEBI Listing Regulations.
The Friction Business Undertaking achieved a turnover of ₹315.04 crore, representing 84% of the company's turnover for the financial year ended March 31, 2026. Its net worth is ₹69.52 crore, approximately 7.50% of the company's net worth as of the same date.
The sale agreement was executed on June 30, 2026, subject to shareholder approval. The transaction is expected to be completed on or before September 30, 2026, contingent upon closing conditions. The consideration for the sale is ₹370 crore in cash, subject to certain transaction adjustments.
The buyer is Rane (Madras) Limited. The rationale for the slump sale is to enhance shareholder value by unlocking embedded value, streamlining the company's portfolio, and allowing management to focus on core long-term strategies. The proceeds will be deployed to fund future investments, with a portion expected to be returned to shareholders via a special dividend. The transaction is also expected to strengthen the company's balance sheet and be EPS-accretive.
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Hindustan Composites Limited filed this with the NSE as a statutory disclosure, categorised under other corporate actions. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Hindustan Composites Limited. Read the original for the full detail.