Kothari Sugars and Chemicals Limited has established September 10, 2026, as the record date for shareholders to claim dividends that have remained unclaimed since the 2019-2020 financial year. The company stated that equity shares corresponding to dividends unclaimed for seven consecutive years are liable to be transferred to the Investor Education and Protection Fund (IEPF) Authority. This transfer is mandated under Section 124(6) of the Companies Act, 2013, and the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016.

The company has issued individual notices and reminders to affected shareholders and published the details on its website. Shareholders are required to submit a written application to the company to claim their unclaimed dividend amounts before the specified deadline. Any claims made after September 10, 2026, will not be considered valid, and the company will not entertain any liability for shares or benefits once transferred to the IEPF.

Once the shares are transferred to the IEPF, shareholders can no longer claim them from the company. However, they may seek to reclaim the shares and dividends by following the procedures stipulated in the IEPF Authority Rules. The company clarified that no claim would lie against it or its Registrar and Share Transfer Agent regarding amounts or shares transferred to the fund.

For further information or clarification, shareholders have been advised to contact the company secretary via email at secdept@hckgroup.com or reach out to the Registrar and Share Transfer Agent, Cameo Corporate Services Limited, in Chennai. The company also noted that the notice regarding this transfer was published in newspapers, including the Financial Express and Makkal Kural, on June 05, 2026.

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.