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Last Updated : Mar 14, 2017 09:54 AM IST | Source: Moneycontrol.com

Gujarat Fluorochemicals surges 4% on buzz of restructuring plans

Company plans to demerge chemicals business into a separate entity; standalone specialty chemicals business valued at Rs 5,000 crore.

Gujarat Fluorochemicals added 4.4 percent intraday on Tuesday on buzz of the company undergoing a rejig to enhance shareholder value.

The company plans to make the company’s structure a simpler one, sources have told CNBC-TV18. The focus will be on restructuring the chemical business and remove the holding company discount.

As part of the strategy, the firm will demerge its chemicals business into a separate entity. Currently, the company has four verticals—chemicals, wind turbine manufacturing, wind farm, film exhibition.

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On the financial front, the company’s standalone specialty chemical business is valued at Rs 5,000 crore, while its market capitalisation is seen at Rs 6,500 crore.

The company, a part of the INOX Group, holds 63 percent stake in INOX Wind which is valued at Rs 2,500 crore. Simultaneously, it also holds 48 percent stake in INOX Leisure, which is valued at Rs 1,150 crore.

The stock has seen strong movements in the recent past, posting a rise of over 21 percent in the past one month. In the past three days, it has risen 6 percent. At 09:15 hrs, Gujarat Fluorochemicals was quoting at Rs 615.90, up Rs 24.80, or 4.20 percent on the BSE. It touched an intraday high of Rs 615.90 and an intraday low of Rs 613.75.

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First Published on Mar 14, 2017 09:17 am
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