KM Sugar Mills announced that the Scheme of Arrangement for the demerger of its Distillery Division became effective on October 1, 2026. The separation creates a new entity, KM Spirits and Allied Industries Limited, distinct from the parent company.

The company filed certified copies of the National Company Law Tribunal (NCLT), Allahabad Bench order with the Registrar of Companies, Uttar Pradesh – I on the effective date. This filing completes the regulatory requirements for the scheme to take legal effect.

Scheme details and timeline

The demerger involves transferring the Distillery Division from KM Sugar Mills to KM Spirits and Allied Industries Limited. The NCLT had previously sanctioned this arrangement. The company had earlier intimated the market about the effective and record dates in September 2026.

Regulatory compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Both the Demerged Company and the Resulting Company submitted the necessary documents to the Registrar of Companies simultaneously.

KM Sugar Mills disclosed the transmission of 81,45,900 equity shares, representing 8.85% of its total paid-up equity share capital, pursuant to the dissolution of a Hindu Undivided Family (HUF).

The filing, submitted under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, details the transfer from Lakshmi Kant Dwarkadas HUF (Promoter) to Smt. Naina Devi Jhunjhunwala (Promoter Group). The transaction occurred on September 28, 2026, through an off-market mode.

No Change in Aggregate Promoter Holding

The company confirmed that there has been no change in the aggregate shareholding of the promoters and promoter group pre- and post-transmission. The total holding remains at 51,991,499 shares, constituting 56.51% of the company's voting capital.

The disclosure was made by Aditya Jhunjhunwala on behalf of Persons Acting in Concert (PAC). The regulatory requirement was triggered as the transmission constitutes more than 2% of the paid-up share capital.

Shareholding Pattern Details

The following table illustrates the shift in individual holdings within the promoter group:

Note: "Other Promoter Group Entities" aggregates holdings of Vatsal Jhunjhunwala, Francoise Commerce Private Limited, Jhunjhunwala Securities Private Limited, Vridhi Trust, Shivam S Shorewala, and K M Vyapar Limited.

What the Numbers Show

The data reveals a consolidation of control within the primary family unit rather than a dilution or acquisition by external parties. While the HUF entity exited completely with a zero balance, Smt. Naina Devi Jhunjhunwala’s stake rose significantly from 22.18% to 31.03%. This shift indicates a restructuring of family assets, moving equity from a collective trust structure to an individual holding within the promoter group, while maintaining the overall lock-in strength at 56.51%.