KM Sugar Mills confirmed that KM Spirit & Allied Industries Limited ceased to be a subsidiary of the company on October 12, 2026. This change follows the effectiveness of the Scheme of Arrangement for the demerger of the company's Distillery Division into KM Spirit & Allied Industries Limited.

The cessation is pursuant to the approval by the Board of Directors of the Resulting Company, which allotted 1,84,00,034 fully paid-up equity shares of ₹10 each to eligible equity shareholders of KM Sugar Mills. These shareholders were those whose names appeared in the Register of Members or depository records as on the Record Date, October 2, 2026.

Shareholding and Control Changes

Prior to the Scheme's effectiveness, KM Sugar Mills held a 100% shareholding in KM Spirit & Allied Industries Limited. Following the allotment of shares directly to the parent company's shareholders, the existing equity shares held by KM Sugar Mills in the Resulting Company were cancelled. Consequently, KM Sugar Mills no longer exercises control over KM Spirit & Allied Industries Limited.

The new equity shares rank pari passu with existing equity shares of the Resulting Company. The allotment also included 7,319 fully paid-up equity shares arising from fractional entitlements. These fractional shares were allotted to Mr. Gurvinder Singh Monga, acting as Trustee for the disposal of such entitlements in the market, with net sales proceeds to be distributed within 90 days.

Regulatory Disclosures

The company filed this disclosure under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing references the SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Additionally, the update addresses observation letters issued by the National Stock Exchange of India Limited (NSE/LIST/ 50518 dated January 12, 2026) and BSE Limited (DCS/AMAL/BW/R37/4004/2025-26 dated January 13, 2026) regarding the Scheme.

KM Spirit & Allied Industries Limited is currently in the process of applying to stock exchanges for listing and trading approval for the newly allotted equity shares.

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.