Somany Home Innovation Limited completes slump sale of water heater business

The Board of Directors of Somany Home Innovation Limited ("Company") had earlier approved the sale of water heater business undertaking (the "WHBU") being part of consumer product division of Company, to its wholly owned subsidiary M/s. Hintastica Private Limited (the "HPL") by way of slump sale through business transfer agreement.

The aforesaid business transfer agreement was executed amongst the parties on 2nd July, 2020. Pursuant to the satisfactory completion of all the conditions precedent (as agreed between the parties under the business transfer agreement), the parties have agreed to 31 December, 2020 as the Closing Date and the Effective Date of the transaction i.e. the sale of WHBU by the Company to HPL shall be effective from 31st December, 2020.

The Board of Directors of the Company at its meeting held on 30th December, 2020 also noted the consummation of the transaction with effect from 31 December, 2020. The Company shall receive a lump sum consideration of Rs. 49.37 crore from HPL against slump sale of WHBU to HPL on a going concern basis.

Shares of Somany Home Innovation Limited was last trading in BSE at Rs. 160.50 as compared to the previous close of Rs. 160.95. The total number of shares traded during the day was 7111 at an average price of Rs. 160.47.

The stock hit an intraday high of Rs. 162.60 and intraday low of Rs. 156.75.

Source : Equity Bulls

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