Sintex Industries surges after demerger scheme

Sintex Industries’ board has approved demerger of custom moulding business and prefab business from its two arms Sintex BAPL and Sintex Infra Projects. Both the companies are wholly-owned subsidiaries of Sintex Plastic Technologies, Sintex Industries, respectively.

The scheme is expected to establish leadership and management focus on the core business. Carving out of business a separate entity will enable the company to manage business and operations efficiently, help businesses to develop and execute growth plans, strategies and market opportunities. This merger will enable the company to explore and achieve significant growth.

As per the scheme, Sintex Industries' shareholders would get shares of Sintex Plastic Technology. For one equity share of Sintex Industries they will get one equity share of Sintex Plastic Technologies.

The share price of Sintex has increased by 5.21 per cent on bourses in early trades and is trading at Rs  76.65 on an intraday basis.

Sintex Industries is engaged in the manufacturing of plastic products; and spinning, weaving and finishing of textiles. Its water storage solutions' product range comprises water tanks for applications, including loft tanks in individual apartments to water storage solutions for building complexes or even whole pin codes, as well as underground storage tanks in various sizes.