Shares of DCM Shriram Industries surged over 4 percent to Rs 200 per share on September 18 after the BSE issued 'no adverse' observations for the company's proposed merger plan. A year back, Shriram Group had approved a scheme of arrangement to amalgamate Lily Commercial with DCM Shriram Industries.
The board has approved the demerger of DCM Shriram Industries into two separate entities: DCM Shriram Fine Chemicals and DCM Shriram International.
In a filing on September 17, BSE issued a letter stating that it had no negative observations regarding listing, delisting, or continuous listing requirements as per the Listing Agreement, allowing the company to proceed with submitting the demerger scheme to the NCLT.
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BSE also noted that DCM Shriram Industries must disclose all ongoing adjudication, recovery proceedings, prosecutions, and any enforcement actions against the company, its promoters, and directors to both the NCLT and shareholders when seeking approval for the demerger scheme.
Additionally, the company must ensure compliance with SEBI circulars and regulations. All companies involved in the scheme must comply with SEBI’s Master Circular and ensure the transfer of all liabilities from the Transferor Company to the Transferee Company.
In the June quarter, DCM Shriram Industries reported a consolidated net profit of Rs 31.36 crore, up from Rs 27.08 crore in the same period last year. The company's total income from operations also grew to Rs 560.46 crore from Rs 527.80 crore year-on-year.
DCM Shriram Industries is a diversified group involved in sectors like Sugar, Alcohol, Power Co-generation, Organic and Inorganic Chemicals, Drug Intermediates, Industrial Fibres, and Defence-related Engineering Projects.
So far this year, shares of DCM Shriram Industries surged over 30 percent, beating benchmark Nifty 50's 15 percent surge.
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