Moneycontrol News
Sintex Plastics Technology, the subsidiary of Sintex Industries, started off the first trade at Rs 130 level on exchanges Tuesday but cooled off due to weak market conditions.
In early trade itself, the stock was locked at 5 percent upper circuit at Rs 136.50 on good buying but as the market started drifting sharply lower, the stock caught in bear grip and lost its momentum.
It fell as much as 4.92 percent at Rs 123.60 on the BSE at 10:42 hours IST. Hence, the total loss from its day's high was 9.5 percent.
Gujarat-based Sintex Industries demerged its plastic division into Sintex Plastics Technology in May 2017.
In September 2016, Sintex Industries board had approved demerger of its custom moulding and prefab businesses into Sintex-BAPL and Sintex Infra Projects, respectively. Both this businesses are wholly owned subsidiaries of Sintex Plastics Technology.
As per scheme of arrangement, Sintex Industries' shareholders received two equity shares of Sintex Plastics Technology for every two shares held.
Out of two shares, one share received by Sintex Industries is for the transfer of custom moulding business and one share for transfer of prefab business to its newly listed company.
Sintex Industries will continue with its textile business, the oldest business of the company. Textile division contributed 12 percent to its revenue in FY16.
Generally, the textile business is a capital-intensive business while plastics business is less capital-intensive.
Posted by Sunil Shankar Matkar
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