Dollar Industries , a leading player in the Indian hosiery and knitwear sector, has announced a significant corporate restructuring initiative. The company's Board of Directors has approved a Composite Scheme of Arrangement involving the demerger of Dindayal Texpro Private Limited (DTPL) and the merger of eight other companies into Dollar Industries.

Demerger and Merger Details

The scheme includes the demerger of DTPL's hosiery business undertaking and the merger of ADDS Projects, Amicable Properties, Bhawani Yarns, Dollar Brands, Goldman Trading, KPS Distributors, PHPL Properties, and Zest Merchants into Dollar Industries. This move is designed to simplify the group's corporate structure and enhance operational efficiencies.

Share Issuance and Exchange Ratio

As part of the arrangement, Dollar Industries will issue 29,80,138 new fully paid-up equity shares with a nominal value of Rs. 2.00 each. These shares will be allotted to the shareholders of the demerged and transferor companies based on specified share exchange ratios. The ratios have been determined based on a valuation report by KPMG Valuation Services LLP and supported by a fairness opinion from V C Corporate Advisors Pvt. Ltd.

Impact on Shareholding Pattern

Post-arrangement, the promoter shareholding in Dollar Industries is expected to decrease from 73.60% to 72.21%, while public shareholding will increase from 26.40% to 27.79%. This change in shareholding structure aims to enhance transparency and align with market best practices.

Strategic Rationale

The restructuring is driven by several strategic objectives:

1. Vertical Integration: The demerger of DTPL's hosiery business is expected to enhance Dollar Industries' in-house production capabilities and reduce reliance on external job work.

2. Brand Consolidation: The merger will bring the "Dollar" brand, currently held by Dollar Brands Private Limited, under the listed entity, centralizing brand ownership.

3. Operational Efficiency: The consolidation is anticipated to streamline operations, reduce costs, and provide greater control over various business aspects.

4. Simplified Corporate Structure: The merger of multiple entities is expected to reduce administrative complexities and improve overall management efficiency.

5. Synergy Benefits: The combined entity is poised to benefit from operational integration, better facility utilization, and enhanced market positioning.

Financial Implications

As of March 31, 2025, Dollar Industries reported net assets of Rs. 86,484.54 lakhs and revenue from operations of Rs. 1,68,218.59 lakhs. The merger is expected to consolidate the financial strengths of all involved entities, potentially leading to improved profitability margins and operating cash flows.

Regulatory Approvals

The scheme is subject to various regulatory approvals, including those from shareholders, SEBI, stock exchanges, and other statutory bodies. The appointed date for the scheme is set as April 1, 2025.

Dollar Industries' strategic restructuring marks a significant step towards consolidating its market position and streamlining its operations in the competitive hosiery and knitwear sector. Shareholders and market observers will be keenly watching the implementation and outcomes of this comprehensive corporate overhaul.

Dollar Industries Limited , a prominent player in the Indian hosiery sector, has announced plans to evaluate a scheme for reorganizing its group companies. The company's board is set to consider a proposal for a Scheme of Arrangement involving its affiliated entities.

Board Meeting Scheduled

According to a regulatory filing, Dollar Industries has scheduled a board meeting for Friday, 26th September, 2025, at its registered office in Kolkata. The primary agenda of this meeting is to consider and approve a proposal for a Scheme of Arrangement of the group companies with Dollar Industries Ltd.

Trading Window Closure

In line with regulatory requirements and the company's Internal Code of Conduct for Prohibition of Insider Trading, Dollar Industries has announced the closure of the trading window for its securities. The trading window will remain closed from 19th September, 2025, until 48 hours after the submission of the board meeting outcome to the stock exchanges.

This closure applies to Directors, Key Managerial Personnel (KMP), designated persons, employees, connected persons, and their immediate relatives.

Implications and Next Steps

While specific details of the proposed reorganization scheme have not been disclosed, such corporate actions often aim to streamline operations, improve efficiency, or unlock value for shareholders. The outcome of the board meeting will likely provide more clarity on the nature and scope of the proposed reorganization.

Investors and stakeholders are advised to await further announcements from the company regarding the details and potential impact of the proposed Scheme of Arrangement.

Dollar Industries Limited will make the information about the board meeting outcome available on its official website at www.dollarglobal.in , in addition to the required stock exchange disclosures.

As this development could potentially impact the company's structure and operations, market participants will be keenly watching for the results of the upcoming board meeting and any subsequent announcements regarding the group's reorganization plans.