Hindustan Composites Limited has announced a significant corporate action involving the sale of its Friction Business Undertaking to Rane (Madras) Limited for a lump-sum cash consideration of ₹370 Crores. This transaction, structured as a slump sale on a going concern basis, includes the manufacturing, development, marketing, and sale of fibre-based friction materials for automotive, rail, and industrial applications. The sale is a strategic move to enhance shareholder value by streamlining the company's portfolio, reducing complexity, and allowing management to focus on core long-term strategies. The proceeds from the sale, after deducting transaction costs and taxes, are intended for reinvestment in line with the company's long-term strategy, with a portion expected to be returned to shareholders as a special dividend. This divestiture also aims to avoid significant future capital expenditure required to maintain the competitiveness of the Friction Business, strengthen the balance sheet, and improve the earnings profile by reducing exposure to a capital-intensive segment facing intense competition and technological disruption. The approval for this sale is being sought from shareholders through a postal ballot process, including remote e-voting. The remote e-voting period will commence on Friday, July 10, 2026, at 9:00 AM IST and conclude on Saturday, August 8, 2026, at 5:00 PM IST. The results of the postal ballot will be announced on Tuesday, August 11, 2026.
