Rain Industries rose 3.87% to Rs 131.40 after company said its step-down subsidiary has completed the sale of its two wholly-owned subsidiaries for Rs 637.40 crore.
Rain CII Carbon, the wholly-owned step down subsidiary of Rain Industries, has completed the sale of its wholly owned subsidiaries namely RUTGERS Polymers, Canada and Handy Chemicals (U.S.A.) for an aggregate cash consideration of Rs 637.40 crore.As a part of its strategy to achieve sustainable growth, create value for all stakeholders and reduce debt, the company has decided to divest the stake in these two non-strategic subsidiary companies, which are engaged in manufacturing and distribution of polynaphthalene sulfonates, under product-group naphthalene derivates, in advanced materials business segment.
The consideration received from the sale of above two subsidiaries will be utilized for repayment of debt and other general corporate needs of the company.
CPS Performance Materials Topco acquired RUTGERS Polymers, Canada for Rs 573.70 crore.
Handy Chemicals (USA) distributes Polynaphthalene Sulfonates manufactured by Ruetgers Polymers, Canada. CPS Performance Materials Topco acquired the company for Rs 63.70 crore.
CPS Performance Materials Topco does not belong to promoters group.
Rain Industries is a vertically integrated global producer of a diversified portfolio of products that are essential raw materials. It operates in three business segments: Carbon, Advanced Materials and Cement.
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