Hindustan Composites Sells Friction Business for ₹370 Cr

Hindustan Composites Ltd has approved the sale of its 'Friction Business Undertaking' to Rane (Madras) Limited for a lump sum cash consideration of INR 370 Crore. The transaction, structured as a slump sale, includes all relevant contracts, assets, and liabilities associated with the development, manufacturing, and marketing of friction materials for automobile, railway, and industrial applications. The Friction Business contributed INR 315.04 Crore, representing 84% of the company's turnover for the financial year ended March 31, 2026. The net worth of the business being transferred is INR 69.52 Crore, or 7.50% of the company's net worth. The sale is subject to shareholder approval, completion of conditions precedent, and closing actions as per the Business Transfer Agreement (BTA), with an expected completion date on or before September 30, 2026. The transaction is outside a scheme of arrangement and requires shareholder approval via a postal ballot process.