Key Announcement:
India Glycols Limited (IGL), a leading manufacturer of bio-based specialty and performance chemicals, has announced the amalgamation of its holding company, Kashipur Holdings Limited (KHL), into itself. The restructuring move aims to simplify the promoter holding structure and improve operational efficiencies.
Details of the Amalgamation
- Amalgamating Entity (Transferor): Kashipur Holdings Limited
- Transferee Entity: India Glycols Limited (Self)
- Type of Consideration: Share Swap
- Regulatory Compliance: The restructuring does not fall under Related Party Transactions (RPT) and is not considered a material RPT.
Business Rationale & Strategic Benefits
- Streamlined Holding Structure:
- The merger simplifies the current promoter shareholding, eliminating the intermediary holding company structure.
- Public shareholders' ownership and stake remain unchanged.
- Focused Growth & Value Unlocking:
- Segregation of Spirits, Biofuel, and Biopharma businesses into distinct entities allows for focused management.
- Independent valuations and potential investor participation in the resulting companies are enabled.
- Operational and Regulatory Efficiency:
- The new structure reduces operational complexity and ensures optimal resource allocation for each business unit.
- Industry-specific risk mitigation and enhanced regulatory compliance per business segment.
Shareholding Changes Post-Amalgamation
| Category | Pre-Amalgamation Shares | Pre-Amalgamation (%) | Post-Amalgamation Shares | Post-Amalgamation (%) |
|---|---|---|---|---|
| Promoter Group | 18,891,032 | 61.01% | 18,659,236 | 60.27% |
| Public Holding | 12,070,468 | 38.99% | 12,302,264 | 39.73% |
| Others | 0 | 0% | 0 | 0% |
| Total Shares | 30,961,500 | 100% | 30,961,500 | 100% |
Change in Share Issuance Post-Restructuring
- For Amalgamation:
- IGL will issue 1 equity share (₹10 face value) per 1 share held by KHL shareholders in IGL.
- For Demerger:
- EBL will issue 1 equity share (₹10 face value) for every 3 shares of IGL.
- ISL will issue 1 equity share (₹10 face value) for every 1 share of IGL.
Outlook & Strategic Positioning
The restructuring aligns with IGL’s long-term vision of enhancing its core operations and achieving sustainable growth. The company expects the segregation of its business verticals to:- Enhance market competitiveness.
- Attract investors with specific industry interests.
- Improve capital efficiency and corporate governance.
India Glycols Limited continues to remain listed on both the National Stock Exchange (NSE) and BSE Limited (BSE), and further updates will be provided upon regulatory approvals and scheme implementation.