Sintex up on "value unlocking " prospect

Since morning, Sintex Industries has been the top gainer on the BSE, going up almost 8% intraday to Rs.78.50, with robust volumes.

After market hours yesterday, the company announced that its Board had approved a demerger scheme – its custom moulding business will be demerged from Sintex BAPL and prefab business will be bifurcated from Sintex Infra Projects.

The market is happy because shareholders of Sintex will also get a benefit of this demerger. The company said, “"the scheme also involves issuance of equity shares of Sintex Plastic Technology to the equity shareholders of Sintex Industries such that shareholders of Sintex Industries will effectively get one equity share of Sintex Plastic Technology upon demerger against one equity share held in Sintex Industries and listing of these equity shares of Sintex Plastic Technology.

Thus the prospect of Sintex Plastic Technology getting listed on the bourses and unlocking value has buoyed the stock price today.