Hercules Hoists hits 20% upper circuit on potential demerger plans

Shares of the hit a 52-week high and were locked in a 20 per cent upper circuit on Monday after the company said it is evaluating the feasibility of demerger of manufacturing and investment activities.

The next meeting of the board of directors is to be held on Friday, September 23, 2022, inter-alia to consider and approve the scheme of arrangement ("Demerger") and any other matter incidental thereto, said the company in BSE filing.

Following the development, the scrip zoomed 20 per cent, its daily circuit limit, to Rs 217.05 on Monday.

The company has an investment in 4 listed Bajaj group companies such as , , and , with the combined value of this investment being nearly Rs 530 crore.

The company holds a stake in various mutual funds from long-term and short-term perspectives. From a long-term perspective, the value of the holding is close to Rs 50 crore, while in the short term, it is close to Rs 63 crore. The current market capitalization of the company is close to Rs 694 crore.

Shares of Hercules Hoists have risen almost 61 per cent in the last month, whereas the counter delivered a return of 54 per cent so far in the current calendar year.

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