In this blog, we will share our spotlight on GHCL Ltd.
GHCL Ltd. – Highlights
The shares of GHCL Ltd. was trading at Rs.292.05, up by 3.13%, hitting a 52 week high of Rs.302.40 in today’s trading session.
The stock price has increased by 77.75% in last one year, while the benchmark index S&P BSE Sensex has increased by 42.60%.
The stock gained after the secured creditors approved the scheme of demerger of GHCL’s Inorganic Chemicals and Textile businesses.
In an earlier meeting in April of this year, the shareholders and unsecured creditors had already approved the demerger scheme. With this, the Company will now seek approval from the honourable NCLT.
The Textile business will be demerged into a separate company as part of the restructuring announced in March last year, and both businesses will be listed as separate business entities. The company anticipates that this demerger will provide various operational and strategic benefits to each Business segment, including focused growth, a more concentrated approach, business synergies, and increased operational and customer focus.
Furthermore, it will address independent business opportunities with efficient capital allocation and attract a diverse set of investors, strategic partners, lenders, and other stakeholders, resulting in increased value creation for stakeholders.
Mr. RS Jalan, Managing Director of GHCL, commented on the development, saying, “This is a significant step forward for the organisation as a whole as it enters the next phase of growth. The demerger will go a long way toward improving opportunities, focus, and business synergies for both companies. It will also help us better cater to the various needs of our diverse businesses and create value for our stakeholders “.
GHCL Limited was founded on October 14, 1983, and has since grown to become a well-diversified group. It has established a presence in the Chemicals, Textiles, and Consumer Products segments.
The company primarily operates in two segments: Inorganic Chemicals (primarily the manufacture and sale of Soda Ash) and Home Textiles (comprising of yarn manufacturing, weaving, processing and cutting and sewing of home textiles products).
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Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purposes. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.