Kothari Sugars and Chemicals Limited has approved a scheme of amalgamation with Kothari Petrochemicals Limited. The Board of Directors approved the scheme at its meeting held on May 19, 2026. The merger aims to simplify the group structure and consolidate the businesses of both entities under the HC Kothari group.

Scheme Details

The scheme involves the amalgamation of Kothari Sugars and Chemicals Limited, the transferor company, with and into Kothari Petrochemicals Limited, the transferee company. The share exchange ratio has been fixed at 1:5. For every five fully paid-up equity shares of ₹10 each held in Kothari Sugars and Chemicals Limited, shareholders will receive one fully paid-up equity share of ₹10 each in Kothari Petrochemicals Limited. The scheme does not involve any cash consideration.

Financial Overview

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

Rationale and Approvals

The amalgamation is expected to eliminate duplication of administrative and operational costs, facilitate unified management, and generate economies of scale. The consolidation is anticipated to improve financial strength and provide diverse strategic options for the combined entity. The transaction is classified as a related party transaction but is being conducted at arm's length.

The scheme is subject to approvals from the National Stock Exchange, the Securities and Exchange Board of India, respective shareholders and creditors, and the jurisdictional National Company Law Tribunal. Kothari Sugars and Chemicals Limited will stand dissolved without winding up upon the scheme becoming operative.

Shareholding Pattern

The shareholding pattern of Kothari Petrochemicals Limited post-amalgamation will see promoters holding 72.50% and the public holding 27.50%. The total number of shares post-scheme will be 7,54,24,116.

Kothari Sugars & Chemicals has formally notified the National Stock Exchange of India of the completion of sugarcane crushing operations at its Kattur Sugar Unit in Tamil Nadu for the sugar season 2025-2026. The operations concluded on May 16, 2026, as disclosed by the company's Company Secretary and Compliance Officer, R. Prakash, in a regulatory filing submitted the same day.

Crushing Season Comes to a Close

The company had previously informed the stock exchange about the commencement of crushing operations at the Kattur unit through a letter dated December 23, 2025. The completion of the current season's crushing cycle marks the end of operations that ran from late December 2025 through mid-May 2026. The intimation has been made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Disclosure

The following table summarises the key operational and regulatory details disclosed by the company:

Company Operations

Kothari Sugars & Chemicals operates two sugar units in Tamil Nadu. The Kattur unit (Unit - I) is situated at Kattur Post, Lalgudi Taluk, Trichy District, while the company's second unit (Unit - II) is located at Sathamangalam Village, Vetriyur Post, Ariyalur District. The regulatory disclosure pertains specifically to the Kattur unit's crushing activity for the concluded sugar season.