KM Sugar Mills fixes Oct 1 as effective date for distillery demerger
- Effective date for distillery demerger fixed as October 1, 2026
- Record date set for October 2, 2026, to determine eligible shareholders
- Shareholders get one ₹10 face value share for every five held
- NCLT Allahabad Bench previously sanctioned the scheme of arrangement
- New entity shares to be listed on NSE and BSE subject to approvals
*this image is generated using AI for illustrative purposes only.
KM Sugar Mills has fixed October 1, 2026, as the effective date for the demerger of its distillery division. The company also set October 2, 2026, as the record date for determining eligible shareholders.
The Board of Directors approved these dates during its meeting on September 19, 2026. This follows the National Company Law Tribunal (NCLT), Allahabad Bench, sanctioning the Scheme of Arrangement. The demerger separates the Distillery Division into a resulting entity named KM Spirits and Allied Industries Limited.
Share Entitlement Details
Shareholders of the demerged company will receive shares in the resulting company based on a specific ratio. The allotment structure is detailed below:
| Shareholder Holding | Allotment in Resulting Company | Face Value |
|---|---|---|
| 5 equity shares | 1 equity share | ₹10 |
The equity shares of KM Spirits and Allied Industries Limited are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited. This listing is subject to applicable regulations and necessary regulatory approvals.
Regulatory Compliance
The disclosure is made under Regulations 30 and 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The effective date marks when the certified true copy of the NCLT order will be filed with the Registrar of Companies.
Historical Stock Returns for KM Sugar Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.63% | -4.92% | -3.93% | +16.20% | +0.67% | +10.72% |
How might the separation of the distillery division impact KM Sugar Mills' debt-to-equity ratio and overall credit rating?
What is the expected timeline for KM Spirits and Allied Industries Limited to receive final listing approvals from NSE and BSE?
How does the 5:1 share entitlement ratio compare to industry benchmarks for similar demergers in the Indian FMCG sector?
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