The board of directors of GHCL Limited has approved a proposal to demerge its textile business, pursuant to a scheme of arrangement between GHCL Limited and the resulting company.
The board has clarified that both its businesses i.e. inorganic chemical business and textile business will be separately listed companies after the approval of the scheme of arrangement by NCLT. It is further clarified that textiles business will not be a subsidiary of inorganic chemical business after the demerger of the company.
The shareholders of the demerged company (i.e. GHCL Limited) will get one equity share of the resulting company i.e. Textile Company, which will be a separate listed company. The new shares of the resulting company will be issued and allotted to the shareholders of GHCL as a consideration under the scheme, which would be applied for listing on BSE and NSE, where the existing equity shares of the company are already listed.
On a standalone basis, the textile business generated revenue of Rs 1,195.49 crore that accounts for 35.5 per cent of the total revenue.
On Monday, the stock of GHCL closed at Rs 97.55. On Tuesday, it opened high at Rs 102.20, up by 4.7 per cent.