GHCL hits new record high after demerger scheme of Inorganic Chemicals and Textile businesses gets nod

The company will now approach the NCLT for their approval on the scheme of demerger of GHCL's Inorganic Chemicals and Textile businesses.

Jul 09, 2021 11:07 IST India Infoline News Service

GHCL Limited, India's leading Chemical & Textile Company, today announced that the secured creditors have approved the scheme of demerger of GHCL's Inorganic Chemicals and Textile businesses. The shareholders and unsecured creditors had already approved the scheme of demerger in a meeting held in April earlier this year. With this, the Company will now approach National Company Law Tribunal (NCLT) for their approval.

The company stock hit a record high of Rs300.50 per piece on Friday. At around 12.01 pm, GHCL Ltd was  trading at Rs296.70 per piece up by Rs13.5 or 4.77% from its previous closing of Rs283.20 per piece on the BSE.

The company said in a filing on Friday that as part of the restructuring which was announced in March last year, the Textile business shall be demerged into a separate company and both businesses shall be listed as separate business entities.

The company expects this demerger to deliver various operational and strategic benefits to each Business segment such as focused growth, concentrated approach, business synergies and increased operational and customer focus.

In addition, it will address independent business opportunities with efficient capital allocation and attract different set of investors, strategic partners, lenders and other stakeholders, thus expected to result in enhanced value creation for stakeholders.

“This is an important step towards the next phase of growth for the organisation as a whole. The demerger will go a Jong way in facilitating better opportunities, focus and business synergies for both businesses. It will also help us cater to the different needs of the diverse businesses in a better way and aid value creation for our stakeholders,” RS Jalan, Managing Director, GHCL, said.

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