Indo Thai Securities Unveils Major Demerger Plan and Q2 Financial Results

Indo Thai Securities Limited (ITSL) has announced a significant corporate restructuring move alongside its financial results for the second quarter. The company's board has approved a demerger of its Broking & Distribution (B&D) undertaking into a wholly-owned subsidiary, Indo Thai Financial Services Limited (ITFSL), in a strategic move aimed at unlocking value and enhancing operational focus.

Demerger Details

The demerger plan involves the following key aspects:

Share Exchange Ratio: Shareholders will receive 1 equity share of ITFSL for every 1 share held in ITSL.
Business Scope: The B&D undertaking encompasses all assets, liabilities, contracts, employees, and operations related to the broking and distribution business.
Financial Significance: For the year ended March 31, the B&D division generated a turnover of INR 26.72 crores, representing 99.60% of ITSL's total standalone turnover.

Rationale and Expected Benefits

The company cited several strategic reasons for the demerger:

Focused Operations: Enabling ITFSL to concentrate on the B&D business with greater specialization.
Streamlined Structure: Allowing ITSL to enhance its remaining business operations.
Value Unlocking: Facilitating focused growth and potentially creating significant stakeholder value.
Tailored Capital Allocation: Enabling distinct approaches to capital and balance sheet management for each business.

Shareholding Impact

Post-demerger, ITFSL's shareholding structure is expected to mirror that of ITSL:

Shareholder Category	Pre-Scheme (%)	Post-Scheme (%)
Promoter	100.00	54.46
Public	0.00	45.54
Total	100.00	100.00

Regulatory Approvals and Listing

The demerger scheme is subject to various approvals:

Shareholders
National Company Law Tribunal
Securities and Exchange Board of India (SEBI)
BSE Limited and National Stock Exchange of India Limited

ITFSL plans to seek listing on both BSE and NSE, subject to regulatory approvals.

Q2 Financial Results

In the same board meeting, ITSL approved its unaudited standalone and consolidated financial results for Q2 and the half-year ended September 30. However, specific financial figures were not disclosed in the provided information.

Conclusion

This strategic move by Indo Thai Securities Limited represents a significant shift in its corporate structure, potentially positioning both ITSL and ITFSL for more focused growth in their respective areas. Investors and market watchers will likely keep a close eye on the execution of this demerger and its impact on the company's future performance.

As the process unfolds, further details on the financial implications and operational changes are expected to emerge, providing a clearer picture of the potential benefits for all stakeholders involved.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.99%	+26.05%	+121.03%	+117.27%	+373.16%	+26,667.08%

Indo Thai Securities , a prominent player in the financial services sector, has reported a significant improvement in its financial performance for the second quarter of the fiscal year. The company's results showcase a remarkable growth trajectory, reflecting its strong market position and operational efficiency.

Financial Highlights

The company's Q2 results reveal impressive year-over-year growth:

Metric	Q2 (Current Year)	Q2 (Previous Year)	YoY Change
Net Profit	₹146.00 million	₹49.00 million	198.00%
Revenue	₹236.00 million	₹97.00 million	143.00%

Indo Thai Securities has demonstrated substantial growth, with its net profit soaring by 198.00% to ₹146.00 million, up from ₹49.00 million in the same quarter of the previous year. This significant increase in profitability underscores the company's ability to capitalize on market opportunities and manage its operations effectively.

Revenue Growth

The company's revenue also witnessed a robust increase, climbing to ₹236.00 million from ₹97.00 million year-over-year, marking a 143.00% growth. This substantial rise in revenue indicates strong business performance and potentially increased market share or expanded service offerings.

Business Segments

According to the latest available information, Indo Thai Securities is primarily engaged in the Broking and Distribution (B&D) business. This segment forms a crucial part of the company's operations, contributing significantly to its overall financial performance.

Corporate Developments

In a recent board meeting held on October 13, 2025, Indo Thai Securities approved a scheme of arrangement for the demerger of its Broking & Distribution (B&D) Undertaking. The B&D Undertaking will be demerged into Indo Thai Financial Services Limited, a wholly-owned subsidiary of Indo Thai Securities.

Key points of the demerger:

The B&D Undertaking represented 99.60% of the total standalone turnover for the year ended March 31, 2025.
Shareholders will receive 1 equity share of Indo Thai Financial Services Limited for every 1 equity share held in Indo Thai Securities.
The demerger aims to enable focused growth, streamline operations, and potentially unlock value for stakeholders.

This strategic move is expected to allow both entities to focus on their respective core competencies and pursue growth opportunities more effectively.

The robust financial performance of Indo Thai Securities, coupled with its strategic corporate restructuring, positions the company for potential future growth and value creation for its shareholders. Investors and market observers will likely keep a close watch on how these developments unfold and impact the company's long-term prospects.