Hindustan Composites completes slump sale of friction business undertaking

M&A / JV 20 Aug 2026 · Completed· ✓ Verified

The transaction represents a divestiture of Hindustan Composites' friction products division, disclosed via NSE Regulation 30 material event announcement. The slump sale structure (adopted under the Income Tax Act) treats the undertaking as a single unit at a fixed consideration, avoiding granular asset valuation. The completion intimation signals closure of regulatory and contractual conditions precedent. The buyer and consideration amount were not disclosed in the public filing.

Why it mattersA slump sale under Income Tax Act § 2(42C) transfers an undertaking as a going concern at a lump-sum price without itemizing assets; this structure avoids detailed asset-by-asset valuation but triggers capital gains tax and compliance with AOP rules-counsel must review the deed of slump sale for indemnities, employee liability carve-outs, and GST treatment of the transfer.
Counsel—
SectorIndustrials
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