Shares of GOCL Corporation surged as high as 12.5 per cent to Rs 207 on the NSE on Monday after the company said its UK subsidiary, HGHL Holdings, has decided to divest 2 lakh shares of Quaker Houghton at a price of Rs 175 per share.
HGHL Holdings has beneficial interest in 4.27 lakh shares of common stock of Quaker Chemical Corporation/Quaker Houghton, USA, GOCL Corporation said in an exchange filing.
"The Board of Directors of HGHL has, at its Meeting held on 18th September 2020, decided to divest 2,00,000 shares of Quaker Houghton, at a price of $175 per share. The total value of the divestment will be $35 million (approx. Rs.257 crores) when completed. There will be no tax implication on HGHL under the transaction," the company said.
GOCL Corp's investment in HGHL is 1 lakh pounds.
At 9:52 AM, the stock was trading 9.78 per cent higher at Rs 202 as compared to a flat benchmark Nifty50 index. A total of around 35,300 shares have changed hands on the NSE and BSE, combined, so far.
In the June quarter of FY21 (Q1FY21), GOCL Corp reported a 44.73 per cent year-on-year (YoY) dip in standalone net sales to Rs 12.24 crore. Net profit, meanwhile, rose 108.74 per cent to Rs 2.12 crore from Rs 1.02 crore in Q1FY20.
The company's earnings before interest, tax, depreciation, and ammortisation (Ebitda) stood at Rs. 3.68 crore while earnings per share (EPS) increased to Rs. 0.43 in June 2020 from Rs. 0.20 in June 2019.
On August 25, the company informed that it has received communication from Hinduja Capital, Mauritius (promoters of the company), whose shareholding in the company is considered as foreign direct investment, about their plans to reduce the shareholding in the company by about 1.10 per cent (from 74.93 per cent to 73.83 per cent) by sale of requisite number of shares in the open market.
"This will enable the company to take up and expand its business in the defence sector in line with the recent announcement of the Govt. of India," the company said. Notably, The government recently announced a new policy raising the cap of foreign direct investment through automatic approval in the defence sector from 49 per cent to 74 per cent.
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