The share price of Hercules Hoists touched a new high of ₹710 on the Bombay Stock Exchange (BSE) today, reporting a 12 percent rise during intraday trading on Thursday. It is the second day in succession that the share price of the company climbed to a fresh high as the demerger record date set for Friday, October 11, 2024, is drawing near.
The company has scheduled this date for determining the eligible shareholders of Hercules Hoists, which will receive equity shares of Indef Manufacturing Limited after the demerger scheme. The filing with the exchange states that every equity shareholder of Hercules Hoists as on the record date shall be allotted one fully paid-up equity share of ₹1 each in Indef Manufacturing for every fully paid-up equity share of ₹1 in Hercules Hoists.
While BSE Sensex has risen by just 13 percent, Hercules Hoists’s share price has risen more than double compared to now, even in 2024, with a 103 percent growth. In the last 18 months, the stock has gone up an incredible 260 percent from ₹198 on the BSE. Hercules Hoists shares, up 9 percent, at ₹691.70, while the BSE Sensex at 2:49 PM today gained only 0.23 percent.
The scheme of arrangement between Hercules and Indef Manufacturing was approved by the board of directors of the company on September 23, 2022. In such a plan, the demerger will be involved in transferring the manufacturing business of Hercules Hoists to its wholly-owned subsidiary, Indef Manufacturing, to segregate the manufacturing operations from the investment activities of Hercules Hoists.
Hercules Hoists articulated that demerger is aimed to unlock value, enhance operation scope, as well as to attract new investors, joint ventures, and technology partners, further exploring additional growth avenues. According to the company, its business is very sensitive to new project investments and general expectations in industrial production. Capital expenditure sector demand from the company was stable during 2023–24 based on positive government signals in terms of capex investment.
As the Indian economy continues to improve, demand for manufactured goods will go up quite significantly, presenting notable opportunities for suppliers of diverse material handling products and services. Management expects industry growth to stabilize at a more sustainable long-term pace of 7-10 percent.
