Shares of Forbes & Company hit the 5 percent upper circuit for the second day on September 28 after the company announced the demerger of its precision tools business on Monday.
The company in a regulatory filing said a new entity – Forbes Precision Tools and Machine Parts Limited (FPTL) – will be carved out from Forbes & Co. There is no cash consideration involved in the scheme of arrangement that will bring the demerger into effect.
Forbes & Company said four fully paid up equity shares of Rs 10 each of the resulting company (FPTL) shall be issued and allotted to the equity shareholders of the demerged company (Forbes & Co) for every one fully paid up equity share of Rs 10 each held by them in the demerged company as on the record date.
Forbes & Co will not undergo any change in shareholding pattern as a consequence of demerger.
The turnover of precision tools business for Forbes for the financial year ended March 31, 2022 was Rs 179.22 crores, and accounted for 76.25 percent of the company's total turnover, it added.
After demerger, Forbes & Co will remain directly engaged in the businesses of industrial automation, coding and medical devices; real estate; and investment into subsidiaries, joint ventures and associates.
The stock of the company traded up 5 percent to Rs 766.05 on BSE. In the last two days it is up over 10 percent.
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