Hindalco Industries To Sell Land To Birla Estates' Unit For Rs 595 Crore
The company expects the sale will conclude in the next three months over multiple tranches.
Hindalco Industries Ltd. will sell a land lot situated in Maharashtra to a subsidiary of Birla Estates Pvt. for a likely consideration of Rs 595 crore, according to an exchange filing.
The company's board of directors approved sale of the land situated in Kalwa, Maharashtra to Ekamaya Properties Pvt., a wholly-owned subsidiary of Birla Estates.
The company expects the sale will conclude in the next three months over multiple tranches. It also expects to receive 1.5% of the sales revenue, the filing said.
The transaction is subjected to signing of definitive agreement, and approval from regulators, Hindalco Industries said.
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Shares of Hindalco Industries Ltd. rose 1.38% intraday, the highest level since July 12. They pared gains to trade 1.22% higher at Rs 700.50 as of 12:33 p.m., as compared to 0.36% advance in the NSE Nifty 50.
The stock has gained 56.86% in 12 months, and 13.96% on year-to-date basis. Total traded volume on NSE so far in the day stood at 0.29 times its 30-day average. The relative strength index was at 57.38.
Out of 27 analysts tracking the company, 24 maintain a 'buy' rating, two recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 7.2%.
