Hardwyn India shares hit upper circuit as board approves merger with subsidiary

Shares of Hardwyn India hit an upper circuit during the early trading session on Friday after the company board of directors approved merger plans with subsidiary Fiba Hardwyn Locks. The company informed the exchanges about the same through an exchange filing on Thursday.

The company board of Hardwyn India has approved the draft scheme of amalgamation with Fiba Hardwyn Locks, said the exchange filing. "It may also be noted that the proposed scheme has been reviewed by the audit committee and upon its recommendation approved by the board in its meeting," it added.

Following the announcement, shares of Hardwyn India surged 5 per cent, locked in the buyer's circuit, to Rs 39.70 on Friday, commanding a total market capitalization of more than Rs 1,385 crore. The scrip had settled at Rs 37.85 on Wednesday at BSE.

Shares of Hardwyn India have delivered multibagger returns to the investors in the last one year as the stock has surged more than 270 per cent from its 52-week lows at Rs 11.27 on July 6, 2022. In the last three years, the stock has delivered a return of a whopping 5,600 per cent to the investors.

Fiba Hardwyn Locks had a turnover of Rs 39.59 crore during the year 2022-23 with a total net worth of more than Rs 6.86 crore. The transferee Fiba Hardwyn Locks shall issue up to 26,48,00,880 equity share to the eligible shareholders of the transferor Hardwyn India.

The company board had approved the scheme of amalgamation and filed it on BSE and NSE in its meeting held on October 21, 2022 but the same was returned due to technical grounds, the company's filing said further. "In the interest of the stakeholders of the company, management decided to reconsider the fresh draft scheme of amalgamation."

Hardwyn India is an India-based manufacturer of architectural hardware and glass fittings, which provides solutions to residential and commercial structures.

For the year ended on March 31, 2023, Hardwyn India's net profit surged 165 per cent to Rs 9.03 crore, which was Rs 3.41 crore in the year-ago period. Its revenue from operations increased about 50 per cent to Rs 125.07 crore during the period under review.

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Shares of Hardwyn India traded ex-split and ex-bonus from June 5, 2023, which is the record date for both corporate actions. Hadwyn India had announced the sub-division of equity shares in a 1:10 ratio with an issue of bonus shares in a 1:3 ratio. The company had announced the corporate action in May earlier this month.

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