Bajaj Steel Industries shares hit a 52-week high on Friday after the company’s board approved the sale of its plastic division, Superpack.
What Happened? Bajaj Steel’s board decided on the sale of its loss-making Superpack division on a slump sale basis to VSA Business Solutions earlier this week for a sum of ₹4.75 Crore.
While Bajaj Steels’ steel division is actively engaged in the manufacturing of cotton processing machines, pre-engineered buildings, engineering products and other industrial products, the company’s Superpack division was concerned with the production of various kinds of master batches used in the plastic industry.
Superpack’s losses over the year had grown to become a bit of a thorn in Bajaj Steels’ profitability.
“The sale would result in benefits such as strengthening the balance sheet of the company, and substantial growth opportunities in line with its strategic directions,” Bajaj Steel said in an exchange filing.
See Also: ‘Very Bullish’ Mark Mobius Predicts India’s IT Sector To Play Big Role In Global Semiconductor Production
Bajaj Steel’s share value at the bourses has also been helped by the company’s strong consolidated numbers for the quarter that ended December 2022 for the 2023 financial year.
The company’s net sales rose 537.65% to ₹21.17 crore in the quarter that ended December 2022 as against ₹3.32 crore during the previous quarter that ended December 2021.
Sales rose 71.04% to ₹161.09 crore in the quarter that ended December 2022 as against ₹94.18 crore during the previous quarter that ended December 2021.
Price Action: Bajaj Steel Industries shares were up 10.41% at ₹1070.45 at market close on Friday.
Read Next: Godrej Properties Stock Slumps After Realtor Scores Raj Kapoor’s Bungalow
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.