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Plastic products manufacturer Sintex Industries gained more than 4 percent intraday Friday on approval from NCLT for demerger of custom moulding and prefab businesses.
"The Honourable National Company Law Tribunal, Bench at Ahmedabad, has sanctioned the composite scheme of arrangement between Sintex Industries, Sintex Plastics Technology, Sintex-BAPL and Sintex Infra Projects and their respective shareholders and creditors," the Gujarat-based plastic products maker said in its filing.
In September 2016, the board of directors of the company approved the composite scheme of arrangement for the demerger of custom moulding business and prefab business from Sintex Industries to Sintex-BAPL and Sintex Infra Projects, respectively.
Both demerged companies are wholly owned subsidiary of Sintex Plastics Technology. With this demerger plan, Sintex intends to streamline various businesses developed by the Group.
"The scheme is expected to establish leadership and management focus on core businesses. This will unlock value and provide attractive opportunity for all stakeholders," the company said in its filing.
Upon demerger, shareholders of Sintex Industries will get one equity share from Sintex Plastics Technology for one share held in company.
New equity shares to be issued by Sinted Plastics Technology to equity shareholders of Sintex Industries post demerger, will be listed on exchanges.
At 12:49 hours IST, the stock was quoting at Rs 101, up Rs 2.25, or 2.28 percent on the BSE.
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