Jindal Saw Ltd clarified on a news report, “Board approves demerger of infra business to Jindal Saw."
Jindal Saw replied stating "We wish to point out that caption of news is not correct and we are clarifying as follows:
Jindal ITF Limited, a wholly owned subsidiary of the Company (i.e. Jindal Saw Limited) has approved an internal re-structuring of its operations by way of demerger and vesting of its infrastructure business undertaking into JITF Urban Infrastructure Services Ltd., another wholly owned subsidiary of the Company and its waterways business undertaking into Jindal Shipyards Limited, again a wholly owned subsidiary of the Company by way of court sanctioned composite scheme of arrangement U/s 391, 394 and other applicable provisions of the Companies Act, 1956 and under applicable provisions of the Companies Act, 2013.
The effectiveness of the scheme is subject to requisite approval by the shareholders, secured and unsecured creditors and sanction by the Hon'ble High Court of Judicature at Allahabad. The scheme does not involve transfer of the waterways business or the infrastructure business of Jindal ITL Limited in the Company as incorrectly stated in the news article."