Dollar Industries

Dollar Industries Ltd's share price jumped 8% following the announcement of a proposed merger with nine promoter group companies. The merger will consolidate entities that own the Dollar brand, real estate used for operations, and manufacturing units into the listed company. Post-merger, promoter group shareholding is expected to increase from 72.21% to 73.60%. The company expects the consolidation to provide brand ownership, greater production control, streamlined operations, reduced related party transactions, and improved governance. The integration aims to achieve vertical integration by merging manufacturing units, reducing reliance on external vendors and lowering administrative costs. The stock reached Rs 396 before settling at Rs 383.10, representing a 4.72% gain. The stock has declined 24.73% over the past 12 months.

Dollar Industries Limited's Board of Directors approved a Composite Scheme of Arrangement involving the demerger of Dindayal Texpro Private Limited and merger of eight other companies into Dollar Industries. The scheme includes demerging DTPL's hosiery business undertaking and merging ADDS Projects, Amicable Properties, Bhawani Yarns, Dollar Brands, Goldman Trading, KPS Distributors, PHPL Properties, and Zest Merchants into Dollar Industries. The company will issue 29,80,138 new equity shares to shareholders of the demerged and transferor companies based on specified share exchange ratios. Post-arrangement, promoter shareholding will decrease from 73.60% to 72.21%, while public shareholding will increase from 26.40% to 27.79%. The scheme aims to simplify corporate structure, enhance vertical integration, consolidate the Dollar brand, reduce intercompany transactions, and improve operational efficiencies. All companies involved are part of the promoter group, making this a related party transaction conducted on arm's length basis. The scheme requires approvals from shareholders, regulatory authorities including SEBI, stock exchanges, and other statutory bodies, with an appointed date of April 1, 2025.

Dollar Industries has announced plans to evaluate a scheme for arranging its group companies. The company is considering a reorganization structure that would involve its affiliated entities.