Kothari Petrochemicals Limited has notified the National Stock Exchange of India regarding the transfer of equity shares to the Investor Education and Protection Fund (IEPF) Account. The company disclosed that shares corresponding to dividends which have remained unclaimed for seven consecutive years are mandated to be transferred to the IEPF. This action is being taken in accordance with the provisions of the Companies Act, 2013, read with the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 and subsequent amendments.

The company published a newspaper advertisement on June 05, 2026, in the Financial Express (English) and Makkal Kural (Tamil) to alert equity shareholders about this development. The notice serves as a formal communication to those shareholders who have not claimed or encashed their dividends within the stipulated period. The transfer process is a regulatory requirement aimed at protecting the interests of investors and ensuring that unclaimed corporate benefits are utilized for investor education and protection.

Key Details of the Transfer

The following table outlines the critical aspects of the share transfer process:

Shareholders are strongly encouraged to verify their dividend status and take necessary action to claim any outstanding amounts. The company has made the details of the notice available on its official website. The transfer of shares to the IEPF implies that shareholders will lose their rights over the shares and any associated benefits once the transfer is completed.

Shareholder Action Required

To prevent the transfer of their shares to the IEPF, eligible shareholders must claim their unclaimed dividends immediately. The company has indicated that the deadline for such claims is critical, although the specific date for the final claim was not detailed in the exchange submission. Failure to claim the dividends by the deadline will result in the automatic transfer of the shares to the IEPF Authority's Demat account.

Post-transfer, shareholders can still claim their shares and dividends from the IEPF Authority, but they must follow the procedure stipulated under the IEPF Rules. The company clarified that no claim will lie against it or its Registrar and Share Transfer Agent regarding the amounts and shares transferred to the IEPF. Investors seeking further information or clarification have been advised to contact the company's officials.

The Board of Directors of Kothari Petrochemicals Limited has approved the Scheme of Amalgamation with Kothari Sugars and Chemicals Limited (KSCL). The merger, which aims to simplify the group structure, is subject to approvals from the National Stock Exchange, Securities and Exchange Board of India (SEBI), shareholders, creditors, and the National Company Law Tribunal.

Financial Details

Both entities are part of the HC Kothari group. The financial details for the companies as of March 31, 2026, are outlined below:

Rationale and Business Operations

The amalgamation is expected to eliminate duplication of administrative and operational costs while improving financial strength and generating economies of scale. KSCL is engaged in the manufacturing of sugar, industrial alcohol, and power co-generation, while Kothari Petrochemicals manufactures Polyisobutylene used in lubricants, fuel additives, and rubber manufacturing.

Share Exchange Ratio

The Scheme does not involve any cash consideration. The share exchange ratio has been determined based on a valuation report from KPMG Valuation Services LLP and a fairness opinion from Saffron Capital Advisors Private Limited. The ratio is set at 1:5, meaning one fully paid-up equity share of Rs.10 each of Kothari Petrochemicals Limited will be issued for every five fully paid-up equity shares of Rs.10 each held in Kothari Sugars and Chemicals Limited.

Shareholding Pattern

The merger will alter the shareholding pattern of the transferee company. The pre-amalgamation shareholding of Kothari Petrochemicals Limited showed promoters holding 72.22% and the public holding 27.78%. Post-amalgamation, the promoter holding is expected to be 72.50%, while the public holding will be 27.50%.