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News: In a regulatory filing the company has announced selling 100% stake in its wholly-owned subsidiary, Globe All India Services Limited to Yatra Online Limited, for 128 Crores (net of debt). Globe All India Services had evolved into one of India's leading Hospitality Management Co’s, with a diversified portfolio spanning Corporate Travel, MICE, Leisure and Car Rental. At the same time, it has announced receiving board approval for setting up an Aluminium Forging Facility at Jamshedpur with an investment of ₹ 57.5 crore, which will primarily cater to EV Market.
View: Sale of non-core business bodes well for the company. On the aluminium forging part, the project will be set up with total installed capacity of 3,000 MT per annum and is expected to be commissioned by Q2FY26 with a revenue potential of ₹ 175 crore at optimum capacity utilisation. The company has charted a very aggressive growth path for itself and is well poised to report healthy growth going forward.
Impact: Positive