Kesoram Industries Limited’s Stocks Decline By Over 10% Amid Spin-Off Of Its Tyre Business
Yesterday morning, Kesoram’ stocks fell over 10 percent after the company decided to spin off its tyre business last week. The company’s board has recently decided to spin off their tyre business by demerging. The resulting company will be called Birla Tyres Limited and will also become a listed company with its shareholding pattern mirroring that of its predecessor.
The demerger was a part of the plan undertaken by the company over the past few months to further realign and recalibrate operations. The proposed spin-off will pave the way for further sharpening and paving the way to their robust growth in cement and tyre industries.
The company incurred a massive loss of INR. 96.25 crore in the quarter that ended on 30th September 2018 largely owing to its loss-making tyre business. However, this time the loss was much less than what it was in the same quarter last year.