Hindusthan National Glass drops after selling wholly owned subsidiary

Hindusthan National Glass & Industries fell 2.1% to Rs 77.10 at 12:30 IST on BSE after the company entered into an agreement for disinvestment of its entire investment in its wholly owned subsidiary, HNG Global GmbH.

Jun 23, 2016 12:06 IST capital market

The announcement was done during market hours today, 23 June 2016.

Meanwhile, the BSE Sensex was down 11.71 points, or 0.04%, to 26,753.94.

On BSE, so far 652 shares were traded in the counter, compared with an average volume of 2,087 shares in the past one quarter. The stock hit a high of Rs 84.65 and a low of Rs 77.10 so far during the day. The stock hit a 52-week high of Rs 119 on 28 July 2015. The stock hit a 52-week low of Rs 57.15 on 12 February 2015. The scrip had underperformed the market in past one quarter, rising 0.57% as against Sensex's 5.67% rise.

The small-cap company has an equity capital of Rs 17.47 crore. Face value per share is Rs 2.

Hindusthan National Glass & Industries said that it will receive 23 million Euro from the divestment in HNG Global GmbH. The subsidiary was sold to a large glass container manufacturing group in Europe. The buyer wants to keep its name confidential, company added. The expected date of completion of sale is 15 July 2016.

HNG Global GmbH has posted turnover of Rs 276 crore during the year ended 31 March 2016 (FY 2016) and contributed 12% to the total consolidated revenue of the company.

Hindusthan National Glass & Industries reported net profit of Rs 8.59 crore in Q4 March 2016 compared with net loss of Rs 77.27 crore in Q4 March 2015. Net sales rose 0.8% to Rs 571.42 crore in Q4 March 2016 over Q4 March 2015.

Hindusthan National Glass & Industries was founded by C K Somany in 1946 following the commissioning of India's first fully automated glass manufacturing plant at Rishra (near Kolkata). At present, it is a key player in India's container glass industry with a pan India presence and its plants located at Rishra, Bahadurgarh, Rishikesh, Neemrana, Nashik and Puducherry.

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