CCEA okays Rs 1,009 cr restructuring plan of loss-making HOCL

Loss-making PSU Hindustan Organics Chemicals' (HOCL), restructuring plan has been approved by the government, with a financial implication of Rs 1008.67 crore, reported a leading business news agency.

May 18, 2017 03:05 IST India Infoline News Service

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Loss-making PSU Hindustan Organics Chemicals' (HOCL), restructuring plan has been approved by the government, with a financial implication of Rs 1008.67 crore, reported a leading business news agency.
 
HOCL's non-viable unit at Rayasani (Maharashtra) will be closed down except di-nitrogen tetroxide (N2O4) plant. The plant will be transferred to ISRO.
 
Power Minster, Piyush Goyal while speaking to a scribe informed that the Cabinet Committee on Economic Affairs (CCEA) has approved a restructuring plan for HOCL.
 
HOCL is a central public sector enterprise under the Department of Chemicals & Petrochemicals.
 
HOCL has units at Kochi (Kerala) and Rasayani (Maharashtra), and most its plants for the past few year have remained shut.

Since 2011-2012, the company has been constantly making cash losses and has failed to regularly pay statutory and salary to its employees since February 2015.

Stock view:
 
Hindustan Organic Chemicals Ltd ended at Rs 29.8, up by Rs 1.15 or 4.01% from its previous closing of Rs 28.65 on the BSE.
 
The scrip opened at Rs 28.5 and touched a high and low of Rs 30.05 and Rs 28.5 respectively. A total of 105591(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 200.17 crore.
 
The BSE group 'T' stock of face value Rs 10 touched a 52 week high of Rs 35.4 on 25-Apr-2017 and a 52 week low of Rs 14.7 on 27-May-2016. Last one week high and low of the scrip stood at Rs 31.1 and Rs 28.3 respectively.
 
The promoters holding in the company stood at 58.78 % while Institutions and Non-Institutions held 0.02 % and 41.21 % respectively.
 
The stock traded above its 50 DMA.

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