Jubilant Inds hits 10% upper circuit

Jubilant Industries opened lower at Rs.148.70 but soon went on to hit the 10% upper circuit at Rs.163.90, which is also its new 52-week high.

The stock hit a high, reacting to its announcement that its arm plans to sell its retail hypermarket. In the issued statement, the company has stated that its wholly owned subsidiary Jubilant Agri and Consumer Products, has agreed to transfer its retail hypermarket business undertaking consisting inter alia of 4 (four) hypermarket stores in Bengaluru, India along with certain specified assets and liabilities including employees, contracts, licenses, permits, consents and approvals relating to this undertaking, (hereafter called the “Business Undertaking”) as a “going concern” to Aditya Birla Retail Limited (“Buyer”) by way of a ‘slump sale’ (as defined under Section 2(42C) of the Income Tax Act, 1961) [“the transaction”] by way of Business Transfer Agreement dated May 12, 2015. The Board of the Company approved the transaction earlier on May 12, 2015.

The transaction is expected to be completed within 4 months, subject to the necessary statutory, regulatory and other approvals, including approval of the Competition Commission of India and the shareholders of the company.