The company is making this move as part of a plan to synergise operations, reported a leading business daily. The board of Century Textiles, a BK Birla Group company, is looking to exit non-core businesses and drive synergies with the Aditya Birla Group.
Once the paper division is sold off, Century Textiles will explore a merger with Grasim. Its cement capacity will augment UltraTech’s existing plants, while Century Textiles will operate as a pure-play real estate arm.
Meanwhile, the stock gained 2.38% at Rs 1,321 per share on BSE at 1106 hours. The stock on NSE attracted a total traded volume of 5,72,471 shares and a traded value of Rs 7,563.54 lakh.
The company has a good consistent profit growth of 35.24% over five years and has been maintaining a dividend payout of 82.94%.
Century Textiles and Industries Limited is engaged in the business of textiles, rayon, cement, and pulp and paper. The company’s segments include Textiles, which includes yarn, cloth and denim cloth, viscose filament yarn and tire yarn; Pulp and Paper, which includes pulp, writing and printing paper, tissue paper etc.