The Hindustan Motors board on Wednesday decided to sell off its Uttarpara unit even before it could complete the process of the proposed demerger of its Chennai plant.
The company after the board meeting informed the BSE that subject to approvals of lenders and other approvals it may require, the company would ?divest the whole or part of the business/ interests of the company in the forge shop and foundry shop at Uttarpara, WB, to such parties and on such terms and conditions as may be deemed fit by the MD.?
An official told FE that the forge shop and foundry shop at Uttarpara was on 300 sq ft and it could generate a few crores for the company. After the demerger and transfer of its Chennai plant to its wholly-owned subsidiary, Hindustan Motors Finance, the company expects R300 crore.
As per earlier plans Hindustan Motors after the demerger is supposed to be rechristened as Hindustan Motors Bengal, under which there would be the Uttarpara Plant (WB) and the Pitampura Plant (Madhya Pradesh).
Officials said the share holders have already allowed the demerger and the Calcutta High Court has asked to carry on with the process, though the matter is still pending at the court.
