GOCL Corporation to sell entire stake in subsidiary IDL Explosives for ₹107 crore
Published on 02/05/2025 09:59 PM
GOCL Corporation to sell entire stake in subsidiary IDL Explosives for ₹107 croreShares of Gocl Corporation Ltd ended at ₹286.35, up by ₹5.35, or 1.90%, on the BSE.By Jomy Jos Pullokaran May 2, 2025, 9:59:39 PM IST (Updated)2 Min ReadHinduja Group firm GOCL Corporation Limited (GOCL) on Friday, May 2, announced the disinvestment of its wholly-owned material subsidiary, IDL Explosives Ltd (IDLEL), for ₹107 crore. The company’s board approved the sale at its meeting held on May 2, and a share purchase agreement was signed on the same day.
"...we now hereby inform that the Board of Directors of the company has at its meeting held today approved - a) Disinvestment of IDL Explosives Limited (IDLEL), a wholly owned material subsidiary of the company (Transaction). b) Share Purchase/Sale Agreement for sale and transfer of the entire equity share capital held by the Company in IDLEL. c) Obtaining of Shareholders’ approval by way of a Postal Ballot for the aforesaid Transaction," according to a stock exchange filing.
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IDL Explosives contributed ₹623 crore, or 87% of GOCL’s consolidated turnover in FY24, while its net worth stood at ₹10 crore, comprising just 0.71% of the group’s consolidated net worth. Despite being a significant revenue contributor, the decision to divest the subsidiary signals a strategic shift in GOCL’s business focus.
The transaction is subject to shareholder approval via postal ballot and other regulatory clearances. Completion is expected within 2-3 months, depending on the fulfilment of conditions set out in the agreement. The company clarified that the transaction does not fall under related party transactions.
Shares of Gocl Corporation Ltd ended at ₹286.35, up by ₹5.35, or 1.90%, on the BSE.
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