GHCL completes divestment of its home textile business for a total consideration of Rs 608.30 crore
This move will enable the management to focus on the strategic growth pillars
On Friday, the stock of GHCL jumped over 4 per cent and recorded its highest single-day volume in the last four trading sessions. Earlier in the day, the stock had marked a fresh 52-week high of Rs 584 and settled around the levels of Rs 570.
During the weekend, the company released a press release wherein, it mentioned that it has completed the divestment of its home textile business to Indo Count Industries Limited w.e.f. April 2, 2022, after obtaining all relevant regulatory and shareholders’ approvals.
The total consideration for divestment of the home textiles business has been calculated at Rs 608.30 crore (subject to validation of customary closing date adjustment of working capital in terms of the definitive agreements). The divestment of GHCL's home textile business is a significant value unlocking exercise for all its stakeholders. This move will enable the management to focus on the strategic growth pillars of chemical and spinning businesses. The proceeds of the sale will be used to further initiatives such as the Greenfield project, product basket expansion, clean energy & ESG initiatives, automation, and exploring opportunities to enter into JVs.
The stock gained more than 10 per cent in the last week and on a YTD basis, it has jumped over 50 per cent.