Divestment of assets push Ballarpur Industries up by 18 per cent

Ballarpur Industries announced that its step-down subsidiary Sabah Forest Industries has entered into a contract with Pelangi Prestasi (part of Albukhary Group) for sale of its timber asset which also includes procurement of fresh timber licenses from the State Government of Sabah. From sale of asset of Sabah Forest Industries, the company will generate cash of around US$ 310 million. The company has already received 10 per cent of the total consideration in cash.

Ballarpur Industries Limited is engaged in the manufacture of a wide range of papers such as coated wood free, uncoated wood free, copy paper, packaging, business stationery, industrial grades and speciality and fine paper. The company is also in the business activities of pulp, paper, paper products and office supplies. 

Investors seems to be excited with this development as stock of Ballarpur industries surge near 18 per cent in the two trading session. Even on Friday, the stock remained in focus and is trading at Rs. 14.7 per share, up by 5.4 per cent.